WHAT IS B2B EXCHANGES?
The definition of B2B exchanges is when suppliers and buyers interact to conduct transactions. B2B make your e-business performance safer by digital transactions. The B2B exchange chain involves:
Furthermore now many of the B2B also provide procurement services, goods for resale, data synchronization, forecasting etc. Moreover B2B market comprises of websites where buyers and sellers meet around the globe.
Through B2B the buyers and sellers are able to communicate, bid, advertise and transact.
Benefits Of B2B Exchanges
The benefits of B2B are as follows:
- Reduce Purchasing Cost: For buyers searching for products requires much less time. Furthermore it also streamlines the ordering procedure.
- Increased Market Efficiency: Moreover companies can get pricing details from various supplier using the internet.
- Greater Marketing Intelligence: B2B allows the marketers to have deep insight of demand in any given market.
- Improve Performance: It allows companies to improve their overall performance of manufacturing and procurement process.
- Remove Cost Inefficiencies: Furthermore it removes costly inefficiencies and deliver a bottom-line savings to all participants.
- Reduce Time: In addition B2B exchange make it possible to enter the global market at minimum cost. And furthermore reduce the time required to make changes in demand patterns.
- Buyers Meet Sellers: Through B2B exchange introduces buyers to sellers which does not happens in traditional market.
Types of B2B Exchanges
B2B exchanges are typically divided into 3 main categories i.e
- Consortia: In a particular industry group of vendors make up a Consortia. Furthermore in consortia public exchanges related to Commerce are run by third party. This type of exchange is open to all the companies meet the particular standards as define by the exchange. Moreover single companies and major suppliers manage the private market. The example of such companies is Wallmart and Dell.
- Vertical: This type of exchange deals with one particular industry or industry segments. Moreover it offers more specialized web content. Most of the vertical exchanges make their money through advertisements of products. Furthermore this type of exchange try to reduce the cost of buying raw material, products and equipment. It needs to assemble as many buyers and sellers as possible.
- Horizontal: Furthermore horizontal exchange serves a wide range of industries. Example of it is PurchasePro. It operate at different levels across numerous verticals. Furthermore they make their money by selling software and related services. They provide generic services like risk management, secure communications, maintenance and procurement etc. Moreover they need large number of suppliers to participate.
Following picture shows an example of horizontal and vertical exchange through companies.