| v> | | | | Once the exchange is set as primary sales channel, |
| Business processes are the building blocks of an | | | | availablefree resources can be used to create more |
| enterprise. Ifone of these processes fails to live up | | | | value added servicesfor clients. Some of the services |
| to its expectation,business starts to flounder. How to | | | | that the exchange may offeralso can be used to |
| minimize the risks, get abetter monitoring of the | | | | generate more value. |
| processes and, at the same time, reducecosts | | | | Reduce Order Processing Cost |
| involved? The answer is — business process | | | | The supply chain solutions of a B2B exchange may |
| automation. | | | | allow sellersto reduce order processing cost |
| Although, automated business processes based on | | | | significantly. Studies showthat cost of processing a |
| onlinetechnologies can create incredible value to | | | | purchase order can be reduced from |
| existing business,many companies are slow to adopt | | | | US$ 70 down to US$ 6 only. |
| technological innovations andreap benefits from them. | | | | Sales and support costs |
| However, lately, things have startedto change! | | | | By automating sales and customer support processes |
| According to a recent poll conducted among mid | | | | companiescan reduce over head costs over 25-30% |
| sizecompanies shows 52 percent of respondents plan | | | | easily. |
| to spend overa million dollar on business process | | | | Inventory keeping costs |
| automation. Largecompanies — early adopters | | | | Clearer visibility and forecasting ability allow |
| of online business processes — havebeen | | | | companiesconsiderably reduce inventory keeping |
| immensely profiting from the value created by | | | | costs. |
| processautomation. Intel recently announced that it | | | | Since an existing B2B exchange may not have all the |
| saved one billiondollar last year alone thanks to online | | | | necessaryfeatures and functions, a good option is to |
| business processmanagement. | | | | build a privateexchange based on one’s own |
| In broader sense, business process management | | | | specific business processautomation need. This |
| technologydelivers solutions to understand, analyze | | | | exchange, at its minimum, should be ableto cover |
| and simulate businessprocess models. Companies | | | | major portion of supply chain and inventory control. |
| adopt this technology to streamlinetheir business | | | | The following elements should be integrated to |
| operations, lower overhead expenses, | | | | createsubstantial value to a private B2B exchange: |
| reducemaverick buying, reduce paper-based — | | | | Supply Chain Management |
| mistakeprone — transactions and get better | | | | Supply chain management is the core solution of an |
| control. The ultimate goalis to make the corporation a | | | | exchangeand can deliver great values to existing |
| fully process-managed enterprise,transformed | | | | systems. |
| through strategy, design, realization and | | | | Implementation of this solution will help achieve |
| actualoperations. | | | | incrediblyhigh return on investment. Business process |
| Companies require streamlining their business | | | | automation in thiscomponent of the exchange |
| processes to helpsolve various crucial but specific | | | | includes both supplier and buyer—sidequotation, |
| problems, such as: | | | | requisition, purchase order and invoice. |
| - An electronic supplier, in order to stay competitive, | | | | Marketplace |
| requiresreducing order fulfillment cost aggressively. | | | | This is the venue where the exchange owner |
| - A merchant needs to reduce shipping time by | | | | company will posttheir products for sale. A shopping |
| better monitoringhis inbound shipping. | | | | cart should be integratedto the electronic |
| - A manufacturer needs to cut production cost by | | | | marketplace in order to automate the buyingprocess. |
| reducingmanufacturing time of a key product. | | | | The offered-for-sale products will be directlyrelated |
| - A bank needs to develop and market a financial | | | | to inventory control management component of |
| product fasterthan its competitors. | | | | theexchange. |
| - A large distributor needs to consolidate buyers and | | | | Auction |
| suppliersto bring efficiency to its business. | | | | Electronic auction system can use both English and |
| Although, business processes are wide in range; and | | | | Dutchauction methods. For convenience the auction |
| there aremany complex issues that require meticulous | | | | component canbe integrated to the electronic |
| work, automationof some basic processes may bring | | | | marketplace. |
| notable result for virtuallyany company. These | | | | Online auction helps liquidate surplus goods easily. |
| processes include supply chain, procurement,logistics, | | | | Reverse Auction |
| inventory control, etc. By adopting an online | | | | This solution allows automate electronic procurement, |
| businessto business exchange companies can | | | | wheresuppliers compete for a business deal real time |
| streamline most of thesebusiness processes bringing | | | | online. |
| added value to their operations. | | | | Members Storefront |
| A B2B exchange is a unified online platform, where | | | | The participants of the Private Exchange — |
| buyers andsellers login to communicate, collaborate | | | | both buyers andsellers of the exchange owner |
| and make businesstransactions. A private B2B | | | | company get a Storefront thatreflects profile of the |
| exchange, mostly, consolidatessuppliers and buyers of | | | | company, their products and otherinformation. |
| a specific company, which owns andoperates the | | | | Forum |
| exchange. | | | | A Forum or Discussion Board is an organized, on-line |
| There are two ways of integrating B2B exchange to | | | | interactivemessage board where participants conduct |
| automatebusiness processes. A company can | | | | discussion on a set oftopics by posting questions, |
| participate in existing B2Bexchange or create its own | | | | comments and responses. |
| private exchange. | | | | Directory of Companies |
| While for small companies, it is more viable to | | | | This is a listing of all registered participants — |
| participate ina major B2B exchange that has required | | | | buyers andsellers of the exchange owner company |
| components, largercompanies should consider creating | | | | — either by businesscategory or by |
| their own B2B exchange. | | | | alphabetical order. An advanced search enginetool can |
| The profits companies can reap from joining an | | | | be incorporated in order to find a company based |
| existing B2Bexchange or creating their own private | | | | ondata provided. |
| one could be enormous. | | | | E—catalog |
| Customer Base Development | | | | E—catalog is a hierarchy of product and |
| A supplier, once registers with a B2B exchange, gets | | | | service categories. |
| immediateaccess to a large community of | | | | All products and services handled by the exchange |
| prospective buyers of his productsor services. | | | | owner companyshould be consolidated in the catalog. |
| Increase Revenue from Existing Customers | | | | Private B2B exchange is a powerful concept, which |
| Business process automation allows companies | | | | engulfs afairly big portion of business processes |
| develop productsfaster, buyers get faster and easier | | | | requiring automation. |
| access to productinformation, receive quicker | | | | This is more like a business ecosystem that has an |
| response to their requests,get better customer | | | | ability tochange the way companies think and do |
| support and may buy products online. | | | | business and createtremendous value to their |
| These turn into more sales. | | | | owners. |
| Add Profit from Value Added Services | | | | |