B2B E-Procurement Models: Examples and Quiz

Study Notes

E-Distributor Model: a digital version of retail and wholesale store, offering MRO goods and indirect goods, owned by one company serving many customers, with revenue generated from sales of goods (e.g., Grainger)
E-Procurement Model: creates digital markets for indirect goods, providing scale economies, with revenue generated from service fees, supply-chain management, and fulfillment services (e.g., Ariba)
Exchanges Model: independently owned vertical digital marketplace for direct inputs, with revenue generated from transaction and commission fees, creating powerful competition between suppliers
Industry Consortia Model: industry-owned vertical digital marketplace open to select suppliers, more successful than exchanges, sponsored by powerful industry players, strengthening traditional purchasing behavior, with revenue generated from transaction and commission fees (e.g., SupplyOn)

Portal Model: offers search plus an integrated package of content and services, with revenue generated from advertising, referral fees, transaction fees, and subscriptions for premium services (e.g., horizontal/general, vertical/specialized, search)
Transaction Broker Model: processes online transactions for consumers, with primary value proposition of saving time and money, and revenue generated from transaction fees (e.g., financial services, travel services, job placement services)
Market Creator Model: creates a digital environment where buyers and sellers can meet and transact, with revenue generated from transaction fees and fees to merchants for access (e.g., Priceline, eBay, on-demand service companies like Uber, Airbnb)
Service Provider Model: offers online services, with value proposition of providing valuable, convenient, time-saving, and low-cost alternatives to traditional service providers, and revenue generated from sales of services, subscription fees, advertising, and sales of marketing data (e.g., Google)