Why Suppliers Should Use B2B Exchanges

Business to business e-commerce is on the rise!boast reverse auction system,where suppliers bid for
Worldwide B2Be-commerce revenues are estimateda deal posted by a buyer.
to reach around US$ 2 trillionin 2004. This is aAs a supplier, you can participate in those tenders
significant leap from last year's US$ 1.4trillion.withoutany extra cost involved.
However, according to a recent survey, although,Low customer acquisition cost
morethan 70% of companies have already usedYour mere presence in the B2B exchange might bring
Internet as a purchasingchannel, a mere ten percentyou newcustomers! Since the buyers come to the
of their overall spending is directedvia the Internet!exchange themselves;your cost of getting customers
Contrary to popular believe, this means,through this channel isrelatively low in comparison to
B2Be-commerce has still large potential to grow.other traditional channels.
Internet has the capacity of changing theYou can even increase your visibility by advertising in
conventional way ofdoing business. Today, you canthekey places of the exchange, where your
not only buy and sell your productsand services onprospective buyersfrequently visit. Being highly
the Internet, you can, virtually, shift all yourbusinesstargeted, these ads produceincredible results.
processes to online solutions as well. If youImprove customer service
takeadvantages of new Internet based technologies,Ability to have constant interaction through the
the outcomewould be tremendously beneficial toB2Bexchange allows you to serve your customers
your business. How to dothis without spending abetter. You cantrack the whole ordering process
fortune and not putting a huge pressureon scarcefrom payment to deliveryand bring greater efficiency
corporate resources? The possible answer could bein customer service. Theintegrated functions of an
B2Bexchanges!exchange such as sales management,internal
A B2B exchange is an online marketplace, wheremessaging service, lead management, etc. alsohelp
buyers, sellersand intermediaries form communities,you managing customers service process effectively.
exchange views, offerproducts and services, andEfficient information sharing method
conduct business transactions.When needed, you can instantly update your catalog
By becoming a member of a B2B exchange you canandinform customers about changes. Whether you
benefit in bothcost-saving and revenue increase -are launchinga new product or having a web seminar,
two primary requirements ofproductivity increase.through the B2Bexchange you can share the
New sales channelinformation more efficiently.
By becoming a member of a B2B exchange, youSome B2B Exchanges use sophisticated knowledge
open a low cost,highly functional and easy-to-usemanagementsystems to create, capture, reprocess
sales channel for your company.and reutilizeinformation intended for specific group of
You expose your company to a new targetedaudience.
audience that otherwisewould have been untapped.These contents or information can be displayed on
Prospective customers can buy productsand servicesdemandor in time to a member - when needed.
from you, using various venues and features of theBusiness processes management
B2B exchange, where you are a member.One of the primary objectives of using B2B
Marketplace: All B2B exchanges include a marketplace,exchanges foryou should be their ability to handle,
wheresuppliers can post sales offer of their productsrun and administervarious business processes. These
and services.solutions assist you tostreamline your business,
Buyers, looking for specific products, can easily findreduce overhead costs and reducedocumentary
bestsuppliers that suit them from the marketplace. Aerrors.
populatedmarketplace can easily become a goodUsing technologies in a bid to streamline
sales channel for asupplier.businessprocesses like supply chain is nothing new.
Electronic catalog: As a member of the B2BCompanieshave been using various solutions to
exchange, you areallowed to add all your products orsupport productdevelopment, customer service,
services to theconsolidated online repository of theprocurement and otherintegral processes for many
exchange. Adding yourproducts to the repositoryyears. Before the Internetera, many companies have
helps to create online standardizeelectronic version ofinvested enormous amount ofmoney in infrastructure
your product specification - if youdon't have thatbuilding to automate supplychain process. Today,
before - and use the same catalog withthanks to the Internet, evensmall companies have
otherelectronic sales systems - even with other B2Bopportunity to use highlysophisticated supply chain
exchangesusing XML interface.solutions for a smallcost. Many B2B exchanges, such
You can publish sales offer of your entire catalog toas Rusbiz.com, allow smallcompanies to use supply
themarketplace, eliminating a need for other webchain management solution for asmall fee. The major
presence. Youcan add products or services to thebenefits of using supply chainsolutions include:
repository one by one oryou can use XML interface1. Reduced sales time
to upload your whole electroniccatalog.2. Better inventory control
Web Store: Some B2B exchanges allow you to3. Lower overhead
convert orintegrate your website to their exchange.4. Reduced manufacturing cycle time
This helps youto handle sales conveniently from your5. Reduced cost of goods
website and themarketplace of the exchangeBusiness to business e-commerce is evolving very
seamlessly. You can make a webstore from scratchfast.
with the help of integrated websitebuilder of the B2BThe fact is, at one point, most of all
exchange as well.businesstransactions will take place via the Internet.
Auctions: One of the great features of many B2BB2Bexchanges are a way of building cost-effective
exchange istheir auction systems. As we all knowe-businessenvironment on the Internet, which is
from the immensesuccess of Ebay, auctioning is acapable of producingconcrete and quantifiable
great way of sellingproducts online. Some exchangesbusiness benefits to theparticipants.