Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    Small Guys Seek Edge in Collaboration

    By
    John S. McCright
    -
    June 11, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Big public e-marketplaces, which were all the rage a year ago but have since taken a beating, are looking for ways to make themselves relevant through providing more collaboration services.

      But as they do, they face a rising tide of interest in one-to-many private trading marketplaces. “We were right that the Internet fundamentally changes business interactions … and that there would be new mechanisms for how you interact with your partners,” said Mohan Sawhney, an e-commerce consultant and professor at Northwestern Universitys Kellogg School of Management, in Evanston, Ill. “What we got wrong was the nature of the mechanism that would facilitate that.”

      Instead of going to a public marketplace that aggregates buyers and sellers, companies should be looking to electronically enable relationships they already have developed, Sawhney said. “Its more important for you to find ways to do business with the people you are already doing business with than it is to find new business,” he said.

      Even some of the exchanges themselves acknowledge that they do little to increase efficiencies in straight procurement. Transora, the consumer packaged goods exchange formed by Procter & Gamble Co. and others, saw its first transactions in April, but Chief Business Officer Rick Herbst said he doesnt believe the exchange will engage in auctions for more than two years.

      “The marketplace doesnt do a good job with auctions,” Herbst said. “There are no efficiencies of scale. Our focus is in building infrastructure where there is economy of scale.”

      Chicago-based Transora is implementing collaborative forecasting planning and replenishment software from Synchra Systems Inc., which it sees as a key differentiator, Herbst said.

      Currently, Transora has 11 suppliers on board. In the next eight to 10 weeks, Herbst anticipates announcing basic supplier enablement with electronic data interchange connectivity. By the end of next month, eight manufacturers will be online with Transora, according to Herbst.

      Similarly, Omnexus, an exchange created by leaders in the plastics industry, is looking to broaden its base of services. By next month, the Atlanta-based exchange will launch online financial services for its customers. It plans to follow that up with design services, insurance and a host of other offerings, like a shopping mall, said Michael Thaler, vice president of strategy for Omnexus.

      Omnexus also plans to provide ERP (enterprise resource planning)-to-ERP connections to more than 1,500 suppliers. This will provide information on product quality, availability, pricing, terms and conditions through machine-to-machine interactions without needing human intermediaries. Next month, exception processing will be introduced.

      “Omnexus becomes the integration hub,” Thaler said. “Any buyer connects to the four founders ERP systems.”

      But public exchanges have their work cut out for them when it comes to changing attitudes. There is a feeling among many that big e-marketplaces have lost some of their previous glamour.

      Converge Inc., an electronics parts exchange, called off an event this month to ballyhoo its launch, which went ahead, anyway. “The B2B [business-to-business] bubble has burst, and there is no sense in announcing just to create awareness,” said Bob Kramich, vice president of marketing at Converge, in Peabody, Mass.

      Some companies that the big public exchanges thought they were going to woo are instead setting up private exchanges to deal directly with their suppliers. Newport News Shipbuilding Inc. last year was approached to start a shipbuilding industry exchange but chose not to because officials didnt feel that online indirect materials procurement would save it much money. The company spends a lot more on procurement of goods used directly in shipbuilding, said CIO Stephen Hassell, in Newport News, Va.

      “After looking at the dynamics of our business, it didnt make sense,” Hassell said. “Weve put our efforts into developing a private exchange.”

      NNS next month will roll out the first versions of an information portal that will enable its suppliers and customers to access information on current shipbuilding projects. The portal is built on Microsoft Corp.s WebForms and WinForms technologies. Although aircraftcarrier.net will be strictly informational initially, it could mature to support transactions, Hassell said.

      Software developers see the shift in attitudes. Integration software developer eForce Inc., of Hayward, Calif., last week announced that it will work with Sun Microsystems Inc., of Palo Alto, Calif., to create myPrivatemarketplace private exchange software for manufacturers and life sciences companies. No availability date was given.

      But dont count out the big public exchanges in the long term, said Tim Clark, an analyst at Jupiter Media Metrix Inc., in Los Altos, Calif.

      “Were at the stage … of building out those private trading networks,” Clark said. “Once people get comfortable with that theyre going to say, Wait a second, maybe there is a role for public exchanges.”

      John S. McCright
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×