MIS 395 Chapter 12

Analysts predict that B2B e-commerce in the United States will grow to approximately________ by 2022.

$7.3 Trillion

Which of the following was the first step in the development of B2B e-commerce?

Automated order entry systems

Which of the following primarily involve long-term sourcing?

E-procurement Net marketplaces and industry consortia

An ________ is an independently owned, online marketplace that connects hundreds to potentially thousands of suppliers and buyers in a dynamic, real-time environment.

Exchange

Which of the following statements about B2B marketing is not true?

Only 10% of B2B marketers use mobile marketing technologies.

A(n) ________ system continuously links the activities of buying, making, and moving products from suppliers to purchasing firms, as well as integrating order entry systems.

SCM

EDI systems generally serve vertical markets.

True

The term BYOD refers to employees:

being allowed or encouraged to use their own mobile devices and laptops.

The Seam is an example of an:

industry consortium

The liquidity of a market is measured by all of the following except:

price transparency.

Automated order entry systems:

show goods from a single seller.

EDI began as a(n) ________ system.

Document automation

An ________ primarily serves businesses that primarily buy direct goods on a spot purchasing basis.

Exchange

Which of the following is not a typical barrier to the implementation of a private industrial network?

It requires the large network owners to give up some of its independence.

Which of the following is a method of inventory cost management that seeks to eliminate excess inventory?

Just-in-time production

________ production is a set of production methods that focuses on the elimination of waste throughout the customer value chain.

Lean

B2B e-commerce websites tend to serve horizontal markets.

True

EDI was developed to reduce the cost, delays, and errors inherent in the manual exchanges of documents among firms.

True

Exchanges are not directly tied to ERP systems used by large firms.

True

Exchanges are used for spot purchasing of MRO supplies.

True

Walmart is the largest purchaser of consumer goods in the world.

True

All of the following are major trends in B2B e-commerce in 2018-2019, except:

a movement toward implementing highly centralized supply chains to reduce risk.

An ________ provides an online catalog that represents the products of thousands of direct manufacturers.

e-distributor

Which of the following primarily deal with indirect goods?

e-distributors and e-procurement Net marketplaces

Identify and describe the major stages in the development of B2B commerce.

1970's: Rise of Automated order entry systems followed by EDI, a communications standard for sharing various procurement documents

________ is defined as the use of digital technologies to permit organizations to work together to design, develop, build, and manage products through their life cycles.

Collaborative Commerce

Supply chain ________ refers to differentiating a firm's products or prices on the basis of superior supply chain management.

Competition

Which of the following terms refers to the links that connect business firms with one another to coordinate production?

Supply chain

All of the following have led to the development of outsourcing of manufacturing around the world except:

environmental concerns.

All of the following are examples of direct goods in the auto industry except:

Desktop computers.

Private industrial networks are usually owned collectively by the major firms participating in the network, while exchanges usually are created by a single sponsoring company.

False

________ purchasing involves the purchase of goods based on immediate needs in larger marketplaces that involve many suppliers.

Spot

What services do e-procurement Net marketplaces provide?

The essential characteristic of a Net marketplace is that it brings hundreds or even thousands of suppliers—each with a digital catalog and potentially thousands of purchasing firms—into a single Internet- based environment to conduct trade.

Collaborative commerce systems:

foster sharing sensitive internal information with suppliers and purchasers.

All of the following are potential benefits of B2B e-commerce except:

increased product cycle time.

E-distributors:

make money by charging a mark-up on products they distribute.

Which of the following is not a characteristic of the use of social networks in B2B e-commerce?

They are always private.

Which of the following statements about EDI systems is true?

They typically serve vertical markets.

________ is a method for ensuring that suppliers precisely deliver ordered parts at a specific time and to a particular location.

Tight coupling

E-Distributors:

make money by charging a mark-up on products they distribute

Highly centralized supply chains produce higher short-term costs, but also lower long-term risk protection.

False

All of the following are important trends in B2B e-commerce in 2018-2019, except:

a decline in the number of Net marketplaces.

An ________ primarily serves businesses that primarily buy indirect goods on a contract purchasing basis.

e-procurement Net marketplace

An example of an indirect good in the fast-food industry is:

Paper napkins

________ is an example of an e-procurement Net marketplace.

Ariba

Describe at least five characteristics of Net marketplaces.

(1) bias—whether the marketplace advantages sellers, buyers, or each group equally (neutral); (2) ownership—who owns the marketplace, a specific firm, group of firms, or an industry group; (3) pricing mechanism—how are prices determined for products sold: fixed prices, bidding, RFPs; (4) Scope/focus—does the marketplace serve horizontal or vertical markets; (5) value creation—what benefits are offered to customers or suppliers; and (6) access to market—is the marketplace open to everyone or limited to invitees only.

In 2018, B2B e-commerce accounted for approximately ________% of all B2B commerce.

46

B2B e-commerce websites:

tend to serve horizontal markets.

A(n) ________ supply chain is one in which the labor conditions in low-wage, under-developed producer countries are visible and morally acceptable to ultimate consumers in more developed industrial societies.

Accountable

A private industrial network is an independently owned online marketplace that connects many suppliers and buyers.

False

E-distributors are sometimes referred to as many-to-one markets, many sellers serving one firm.

False

Few large firms today have Electronic Data Interchange (EDI) systems.

False

Tight coupling seeks to reduce excess inventory to a bare minimum.

False

Which of the following statements about Walmart's Global Replenishment System (GRS) is not true?

GRS is based on past point-of-sale data.

Office supplies are an example of:

Indirect goods

A majority of B2B buyers worldwide now believe their mobile device is essential to their work. Which age-group had the highest percentage agreeing with this statement?

Millennials (ages 18-35)

The essential characteristic of ________ is that they bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.

Net marketplaces

Define and explain supply chain management systems, supply chain simplification, and collaborative commerce, and the relationship between these concepts.

Supply chain management systems coordinate and link the activities of suppliers,shippers, and order entry systems to automate the order entry process from start to finish including the purchase, production, and moving of a product from a supplier to a purchasing firm. Supply chain simplification refers to the reduction of the size of a firm's supply chain. Firms today generally prefer to work closely with a strategic group of suppliers to reduce both product costs and administrative costs. Instead of open bidding for orders, large manufacturers have chosen to work with strategic partner supply firms under long-term contracts that guarantee the supplier business and establish quality, cost, and timing goals. These strategic partnership programs are essential for just-in-time production models. They often involve joint product development and design, integration of computer systems, and tight coupling of the production processes of two or more companies. Collaborative commerce is a direct extension of supply chain management systems and supply chain simplification. The goal is for organizations to collaboratively design, develop, build, and manage products throughout their life cycles. The focus has changed from the simplification of transactions to the relationships between the supply chain participants. Collaborative commerce fosters the sharing of sensitive internal information between suppliers and purchasers. A rich communications environment is cultivated so that inter-firm sharing of designs, production plans, inventory levels, and delivery schedules can take place. Strategic partners in a supply chain are connected for much broader purposes, including potentially the development of shared products.

Define the procurement process. What are the seven basic steps in the procurement process?

The procurement process is how businesses buy the goods and resources needed to complete the products they will sell to their consumers. The first step of the process is to search for products, which is followed by qualifying if the products fit the business' needs. The third step is to negotiate the resources being purchased and then to purchase them. The fifth step is to invoice the completed order for later reference and inventory. The sixth step is to ship the ordered resources and remittance payments wrap up the procurement process.

Operating on a global scale is one objective of private industrial networks.

True

Purchasing managers are key players in the procurement process.

True

The majority of inter-firm trade involves:

contract purchasing of direct goods.

NeweggBusiness is an example of a(n):

e-distributor

Which of the following primarily serve horizontal markets?

e-distributors and e-procurement Net marketplaces

Which of the following primarily deal with direct goods?

exchanges and industry consortia

An ________ serves businesses that primarily buy direct goods on a contract purchasing basis.

industry consortium

The last step in the procurement process is:

sending a remittance payment

Trans-organizational business processes require ________ to perform.

two independent firms