Skip to main content
SpringerLink
Log in

Analysis of B2B e-marketplaces: an operations perspective

  • Original Article
  • Published:
Information Systems and e-Business Management Aims and scope Submit manuscript

Abstract

The phenomenon of business-to-business (B2B) e-marketplaces has triggered a lot of interest among researchers in recent years. Most of these studies focus on price competition or cost reduction. Few studies, however, have examined the impact of e-marketplaces on the participants’ supply chain operations, including inventory management and order fulfillment. This study aims to fill such a gap. Employing agent-based simulations, we find that supply network agents tend to keep more inventories and backlog/lose fewer orders in the e-marketplace than in traditional supply chains. And this effect is profounder for the upstream agents, i.e., distributors and manufacturers than for downstream agents, i.e., retailers. Managerial implications of these findings are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Notes

  1. http://www.swarm.org/wiki/Main_Page.

References

  • Akkermans H (2001) Emergent supply networks: System dynamics simulation of adaptive supply agents. In: Proceedings of the 34th Hawaii international conference on system sciences

  • Allwood J, Lee J (2005) The design of an agent for modelling supply chain network dynamics. Int J Prod Res 43(22):4875–4898

    Article  Google Scholar 

  • Axtell R (2000) Why agents? On the varied motivations for agent computating in the social sciences. Unpublished

  • Bakos Y (1991) A strategic analysis of electronic marketplaces. MIS Quart 15(3):295–310

    Article  Google Scholar 

  • Bandyopadhyay S, Barron J, Chaturvedi A (2005) Competition among sellers in online exchanges. Inf Syst Res 16(1):47–60

    Article  Google Scholar 

  • Beamon BM, Chen VCP (2001) Performance analysis of conjoined supply chains. Int J Prod Res 39(14):3195–3218

    Article  Google Scholar 

  • Bernstein F, Federgruen A (2003) Pricing and replenishment strategies in a distribution system with competing retailers. Oper Res 51(3):409–426

    Article  Google Scholar 

  • Calza F, Passaro R (1997) Edi network and logistics management at unilever-sagit. Supply Chain Manage Int J 2(4):158–170

    Article  Google Scholar 

  • Caridi M, Cigolini R, Marco D (2005) Improving supply-chain collaboration by linking intelligent agents to cpfr. Int J Prod Res 43(20):4191–4218

    Article  Google Scholar 

  • Cavalieri S, Cesarotti V, Introna V (2003) A multiagent model for coordinated distribution chain planning. J Organ Comput Electr Commerce 13(3/4):267–287

    Article  Google Scholar 

  • Chaturvedi AR, Mehta SR, Dolk D et al (2006) Computational experimentations in market and supply-chain co-design: a mixed agent approach. IseB 4:25–48

    Article  Google Scholar 

  • Chen F, Ryan JK, Simchi-Levi D (2000) The impact of exponential smoothing forecasts on the bullwhip effect. Naval Res Logistics 47:269–286

    Article  Google Scholar 

  • Croom S (2001) Restructuring supply chains through information channel innovation. Int J Oper Prod Manage 21(4):504–550

    Article  Google Scholar 

  • Dai Q, Kauffman R (2006) To be or not to b2b? Evaluating managerial choices for e-procurement channel adoption. Inf Technol Manage 7(2):109–130

    Article  Google Scholar 

  • Dasgupta P, Moser LE, Melliar-Smith PM (2005) Dynamic pricing for time-limited goods in a supplier-driven electronic marketplace. Electronic Commer Res 5:267–292

    Article  Google Scholar 

  • Datta P, Christopher M, Allen P (2007) Agent-based modelling of complex production/distribution systems to improve resilience. Int J Logistics Res Appl 10(3):187–203

    Article  Google Scholar 

  • Day GS, Fein AJ, Ruppersberger G (2003) Shakeouts in digital markets: lessons from b2b exchanges. Calif Manage Rev 45(2):131–150

    Google Scholar 

  • Forrester J (1961) Industrial dynamics. MIT Press, New York

    Google Scholar 

  • Galbreth MR, March ST, Scudder GD et al (2005) A game-theoretic model of e-marketplace participation growth. J Manage Inf Syst 22(1):295–319

    Google Scholar 

  • Gjerdrum J, Shah N, Parageorgiou L (2001) A combined optimization and agent-based approach to supply chain modelling and performance assessment. Prod Plann Control 12(1):81–88

    Article  Google Scholar 

  • GMA (2002) Cpfr baseline study manufacturer profile. Available via http://www.gmabrands.com/industryaffairs/docs/cpfr.pdf. Accessed 8 Feb 2008

  • GMA (2006) Insights into the food, beverage, and consumer products industry. Available via http://www.gmabrands.com/publications/docs/GMACPGIndustryBenchmarkingandIssues-Nov06.pdf. Accessed 8 Feb 2008

  • Gosain S, Malhotra A, Sawy OAE (2005) Coordinating for flexibility in e-business supply chains. J Manage Inf Syst 21(3):7–45

    Google Scholar 

  • Gottschalk P, Abrahamsen AF (2002) Plans to utilize electronic marketplaces: the case of b2b procurement markets in norway. Ind Manage Data Syst 102(6):325–331

    Article  Google Scholar 

  • Granot D, Sošic G (2005) Formation of alliances in internet-based supply exchanges. Manage Sci 51(1):92–105

    Article  Google Scholar 

  • Grey W, Olavson T, Shi D (2005) The role of e-marketplaces in relationship-based supply chains: A survey. IBM System Journal 44(1):109–123

    Article  Google Scholar 

  • Holzmuller H, Schluchter J (2002) Delphi study about the future of b2b marketplaces in Germany. Electron Commer Res Appl 1:2–19

    Article  Google Scholar 

  • Ito T, Abadi SM (2002) Agent-based material handling and inventory planning in warehouse. J Intell Manuf 13:201–210

    Article  Google Scholar 

  • Ivang R, Sørensen OJ (2005) E-markets in the battle zone between relationship and transaction marketing. Electronic Markets 15(4):393–404

    Article  Google Scholar 

  • Joh YH, Lee JK (2002) Buyer’s customized directory management over sellers’ e-catalogs: logic programming approach. Decis Support Syst 34:197–212

    Article  Google Scholar 

  • Kleindorfer PR, Wu DJ (2003) Integrating long- and short-term contracting via business-to-business exchanges for capital-intensive industries. Manage Sci 49(11):1597–1615

    Article  Google Scholar 

  • Langdon CS, Sikora RT (2006) Conceptualizing co-ordination and competition in supply chains as complex adaptive system. Inf Syst E-Business Manage 4:71–81

    Article  Google Scholar 

  • Lin F, Sung Y, Lo Y (2005) Effects of trust mechanisms on supply-chain performance: a multi-agent simulation study. Int J Electronic Commer 9(4):91–112

    Google Scholar 

  • Lin F, Tan G, Shaw M (1999) Multiagent enterprise modeling. J Organ Comput Electronic Commer 9(1):7–32

    Google Scholar 

  • Lu D, Antony F (2003) Implications of b2b marketplace to supply chain development. TQM Magaz 15(3):173–179

    Article  Google Scholar 

  • Macal CM, North MJ (2003) Effects of global information availability in networks of supply chain agents. Agent 2003 Conference Proceedings, pp 235–251

  • Malone T, Yates J, Benjamin R (1987) Electronic markets and electronic hierarchies: effects of information technology on market structure and corporate strategies. Commun ACM 30(6):484–497

    Article  Google Scholar 

  • Masella C, Rangone A (2000) A contingent approach to the design of vendor selection systems for different types of co-operative customer/supplier relationships. Int J Oper Prod Manage 20(1):70–85

    Article  Google Scholar 

  • North MJ, Macal CM (2002) The beer dock: three and a half implementations of the beer distribution game. Unpublished Manuscript

  • Owan H, Nickerson JA (2004) Internet exchange formation and competition when potential participants can coordinate. Unpublished Manuscript

  • Parunak HV, Savit R, Riolo RL (1998) Agent-based modeling vs. Equation-based modeling: a case study and users’ guide. In: Proceedings of multi-agent systems and agent-based simulation (MABS’98), pp 10–25

  • Powell A (2001) The role of b2b exchanges and implications for the future. The Conference Board Inc., New York

    Google Scholar 

  • Robinson W, Elofson G (2001) Electronic broker impacts on the value of postponement in a global supply chain. J Global Inf Manage 9(4):29–43

    Google Scholar 

  • Sadeh NM, Hildum DW, Kjenstad D (2003) Agent-based e-supply chain decision support. J Organ Comput Electronic Commer 13(3/4):225–241

    Google Scholar 

  • Sadeh NM, Hildum DW, Kjenstad D et al (2001) Mascot: an agent-based architecture for dynamic supply chain creation and coordination in the internet economy. Prod Plann Control 12(3):212–223

    Article  Google Scholar 

  • Schlueter-Langdon C, Bruhn P, Shaw MJ (2000) Online supply chain modeling and simulation. In: Luna F, Stefansson B (eds) Economic simulations in swarm: agent-based modeling and object oriented programming. Kluwer Academic Publishers, Boston pp 251–272

    Google Scholar 

  • Signorile R (2002) Simulation of a multiagent system for retail inventory control: a case study. Simulation 78(5):304–311

    Article  Google Scholar 

  • Sikora R, Shaw MJ (1998) A multi-agent framework for the coordination and integration of information systems. Manage Sci 44(11):65–78

    Article  Google Scholar 

  • Surana A, Kumara S, Greaves M et al (2005) Supply-chain networks: a complex adaptive systems perspective. Int J Prod Res 43(20):4235–4265

    Article  Google Scholar 

  • Wang CX, Benaroch M (2004) Supply chain coordination in b2b electronic markets. Int J Prod Econ 92:113–124

    Article  Google Scholar 

  • Wilke J (2002) Using agent-based simulation to analyze supply chain value and performance. In: Paper presented at the Supply Chain World Conference and Exposition, New Orleans, 22–24 April 2002

  • Wong CY, Arlbjørn JS, Johansen J (2005) Supply chain management practices in toy supply chains. Supply Chain Manage Int J 10(5):367–378

    Article  Google Scholar 

  • Wu DJ, Kleindorfer PR (2005) Competitive options, supply contracting, and electronic markets. Manage Sci 51(3):452–466

    Article  Google Scholar 

  • Xie M, Chen J (2004) Studies on horizontal competition among homogenous retailers through agent-based simulation. J Syst Sci Syst Eng 13(4):490–505

    Article  Google Scholar 

  • Zhao K, Shaw MJ, Xia M, Subramaniam C (2004) The structure evolution of b2b enterprise networks. In: Tomak K (ed) Advances in the economics of information systems. Idea Group Publishing, Hershey

    Google Scholar 

  • Zhu K (2002) Information transparency in electronic marketplaces: why data transparency may hinder the adoption of B2B exchanges. Electronic Markets 12(2):92–99

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management Information Systems, University of Illinois at Springfield, One University Plaza, Springfield, IL, 62703, USA

    Yifeng Zhang

  2. Department of Information and Decision Sciences, University of Illinois at Chicago, Chicago, IL, USA

    Siddhartha Bhattacharyya

Authors
  1. Yifeng Zhang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Siddhartha Bhattacharyya
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yifeng Zhang.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Zhang, Y., Bhattacharyya, S. Analysis of B2B e-marketplaces: an operations perspective. Inf Syst E-Bus Manage 8, 235–256 (2010). https://doi.org/10.1007/s10257-008-0096-y

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10257-008-0096-y

Keywords

Search

Navigation