Business-To-Business Exchanges

Abstract Business-to-business electronic commerce includes the use of exchanges, Internet-based marketplaces in which companies can purchase or sell a variety of products, some generic across industries and others specific to a given industry. the proliferation of exchanges since 1999 provides managers with numerous choices for purchasing and selling office supplies, maintenance and repair equipment, and surplus inventory as well as steel, paper, plastics, energy, and a host of other industry products. Business managers and IT professionals need to be aware of the costs and benefits of using exchanges and how exchanges may affect companies operating at various points on the supply chain. This article describes the various types of exchanges, how they evolved, and their costs and benefits. It provides advice to managers regarding the selection and effective use of exchanges.