What Business Really Wants From Scm/e-marketplace.

s thousands of IT- professionals are aware of themostly about the enterprise part. This is
fact that SCM/e-marketplace is getting more andERP’s core set. The system attempts to
more popular. Business is a community whereintegrate all departments and functions across a
everybody is interdependent. Success of one party incompany into a single computer system that can help
business correlation brings benefits to the other one.to serve all those particular needs of different
Failures of others are turning into your own. Ourdepartments. People in the departments all see the
everyday life demands are constantly changing. Nosame information and can update it. Each of those
wonder that being the best in your domain requiresdepartments has its own computer system optimized
excellence in everything especially if it is an ITfor the particular ways that the department does its
industry which serves as a helping hand for thework. ERP combines them all together into single
overwhelming majority of other ones.integrated software program that runs off a single
Business is a community where everybody isdatabase so that the various departments can more
interdependent. Success of one party in businesseasily share information and communicate with each
correlation brings benefits to the other one. Failuresother.
of others are turning into your own. Our everydayYou also know that CRM (Customer Relationship
life demands speed in every single step and action.Management) is an information industry term for
No wonder that being the best in your domainmethodologies, software, and usually Internet
requires excellence in everything whether it iscapabilities that help an enterprise manage customer
gardening or IT industry. So what is SCMrelationships in an organized way. For instance, a
e-marketplace and what business really want from it?company might build a database about its customers
E-marketplace is known as Internet-basedthat described relationships in sufficient detail so that
environment that brings together business-to-businessmanagement, salespeople, people providing service,
buyers and sellers so that they can trade moreand the customer directly could access information,
efficiently online. Today we are living in a high-techremind customers of service requirements, and know
era that offers lots of benefits to people. Amongwhat other products a customer had purchased, and
such benefits e-marketplace can be mentioned. It hasso on.
taken corporate world with a swift trust. What canSupply Chain Management (SCM) deals with the
be noticeable in a further growth on that road is aplanning & coordination of resource procuring, product
common feature in the behavior of many companies.marketing, production scheduling, and end-product
None of them paid attention to a new emergeddelivering across multiple organizations. With the
system because most of them were concernedemergence of e-Marketplaces, it is natural to seek
about reliability of a new system. But time broughtautomated solutions that are capable with coping
changes and e-marketplace has made it easier forwith dynamic market conditions and evaluating a large
companies to interact with customers and suppliersnumber of procurement options in real time while
online and proved its safety. Moreover, customizingtaking into account strategies employed by market
conventional online services have proven to be acompetitors. It is therefore necessary to use
boon for many people.automated programs or software trading agents to
Electronic marketplace (e-marketplaces) has asupport and perform Supply Chain Management.
profound influence on the way in which organizationsNowadays modern eMarketplaces deliver a much
manage their supply chains. Followers ofhigher return for less investment. It helps to arrange
e-marketplace concept suggest that web-basedmany-to-many connectivity instead of one-to-one,
trading systems would enable companies to morehigher efficiency due to lower connection and
efficiently buy, sell, and manage their supply chainnetwork costs that saves time.
processes on a global scale. Besides every singleAdvantages from applying such system vary
company that has decided to apply to that systembetween industries. But there can be some common
states the extension of their e-business tools offeatures that can easily gather all businesses under
e-marketplace which are useful in channelingone SCM/e-marketplace roof.
members in the retail sector for business-to-businessGeneral business benefits can be gained from new
Supply Chain Management flow.partnerships and collaboration between businesses of
Most of the companies are turning to e-marketplacesone organization or from several interdependent
to scale up efficiencies, lower costs and broadenbusinesses of one company of enterprise. In that
market reach in their domain.case supply chain management is more active and
The key benefits for users of such system areeffective.
reduced purchasing costs, greater flexibility, savedEstablished & operating in a hi-tech way
time, better information, and better collaboration.e-marketplace system can provide a level of
However, the drawbacks include costs in changingconfidence and faith for all engaged in working with
procurement processes, cost of applications, set-up,that.
and integration with internal systems, and transactionAlso e-marketplaces offer declining of promotion,
subscription fees. With electronic marketplace you domarketing and advertising costs. That is why other
more business.information systems and channels can be hardly
There are three distinct types of e-marketplace:compared to SCM/e-marketplace.
independent, in which public environments seek simplyBut before breaking your neck in using e-marketplace
to attract buyers and sellers to trade together;it is always better to decide properly whether it fits
consortium-based, in which sites are established on anto your business or not. There are some issues that
industry-wide basis, typically when a number of keyneed to be considered.
buyers in a particular industry get together; and-You should take into account your domain (whether
private, in which e-marketplaces are established by ait is a chewing gun manufacturing or heavy industry).
particular organization to manage its purchasing alone.-You need to know who share the profits & the
Supply chain management (SCM) is the integratedrisks in order to reduce costs
management of materials and information from raw-You need to make sure that your company has a
material suppliers to the delivery of the finishedstrong image or brand to think about marketing and
product to the customer. The integratedpromotion without fear of being mistaken.
management includes product design, production,-You should definitely take into account technical
distribution, and transportation functions. Differentissues and your facilities to cope with tough situations
links in the supply chain – such aswhich might occur.
manufacturers, materials, vendors, and retailers - areGood SCM/e-marketplace solutions require a
collaborating using web-based technologies.synthesis of several fields: information technology,
To succeed in an e-marketplace, you need SCMeconomics, industrial operations research, organization
applications that deliver real-time communicationmanagement, artificial intelligence, multi-agent systems
solutions and have the flexibility to manage rapidand statistics.
change. Moreover, your SCM solution must add valueThese facts prove that eMarketplace, or electronic
as part of an integrated enterprise. It shouldmarketplace creates a single standard process for
communicate evenly with enterprise resource planningtransacting business with lots of pluses & bonuses. It
(ERP), customer relationship management (CRM), andis more than just the next wave of computer-aided
e-business system solutions.marketing; it's a way of doing business. This is
In Enterprise Resource Planning (ERP) you shouldexactly what business needs.
remember not about resource or planning itself but