Module 1: Introduction to B2B Integration

In this course, the term direct trading partner relationship describes relationships between buyers and suppliers.. Although remote shopping provides enhanced information and functional

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Contents

Overview 1

Lesson: Introduction to B2B E-Commerce 2

Lesson: Introduction to B2B Trading

Review 19

Module 1: Introduction

to B2B Integration

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Instructor Notes

This module introduces students to business-to business B2B e-commerce and the roles of different organizations as they buy and sell products in a B2B e-commerce scenario The module also introduces the elements of a B2B integration solution

After completing this module, students will be able to:

! Describe B2B e-commerce and the types of relationships between suppliers, buyers, and marketplaces

! Describe the process of selling products to trading partners over the Internet

To teach this module, you need the following materials:

! Microsoft® PowerPoint® file 2420A_01.ppt

! Module 1 animation, How Trading Partner Integration Works,

2420A_01d005.htm

To prepare for this module:

! Read all of the materials for this module

! Preview the animation

Presentation:

45 minutes

Required materials

Preparation tasks

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iv Module 1: Introduction to B2B Integration

How to Teach This Module

This section contains information that will help you teach this module

Lesson: Introduction to B2B E-Commerce

This lesson introduces B2B e-commerce and the elements of B2B e-commerce that this course focuses on When introducing B2B e-commerce, avoid lengthy discussions on elements that are outside the scope of this course, such as supply chain management Ensure that students understand the difference between

direct and indirect trading partner relationships Play the How Trading Partner Integration Works multimedia file, and then discuss the animation with the

students

The following information is specific to individual pages in this lesson

In this course, the term direct trading partner relationship describes

relationships between buyers and suppliers Students may also be familiar with

the term peer-to-peer relationship Ensure that students do not confuse direct and indirect trading partner relationships with the manufacturing terms direct and indirect materials Also note that we start each module with the full term, B2B trading partner integration, and then use B2B integration thereafter

This slide briefly introduces the next slide: What Is B2B Trading Partner Integration? Define B2B e-commerce and then move to the next slide to emphasize the topics that are included in trading partner integration Also discuss the topics that are not included in Course 2420A Be sure to read the definition and example for supplier-buyer collaboration, because that term can cause confusion

When we mention the advantage of greater cost savings, we are referring to long-term savings Significant start-up costs occur in both direct and indirect trading partner relationships Although start-up costs may inspire interesting class discussions, limit your discussion about these costs

Lesson: Introduction to B2B Trading Partner Integration

This lesson introduces the modules in the course, topic by topic Use this lesson

to provide students with an overview of the topics that they will learn in the class Explain to students how each page in this lesson corresponds to a segment of the multimedia file in the previous lesson, and also to a subsequent module in the course

Although remote shopping provides enhanced information and functionality to buyers when they shop on marketplace Web sites, be sure to emphasize that remote shopping is an equally important value proposition for suppliers in direct trading partner relationships

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Customization Information

This section identifies the lab setup requirements for a module and the configuration changes that occur on student computers during the labs This information is provided to assist you in replicating or customizing Microsoft Official Curriculum (MOC) courseware

There are no labs in this module, and as a result, there are no lab setup requirements or configuration changes that affect replication or customization

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Overview

! Introduction to B2B E-Commerce

! Introduction to B2B Trading Partner Integration

***************************** ILLEGAL FOR NON - TRAINER USE ******************************

In addition to conducting business with consumers, most organizations buy and sell products or services with vendors, distributors, and other organizations Establishing effective business-to-business (B2B) relationships involves many challenges For example, an organization may store its business data in formats that are different from those that its trading partners use Incompatible business systems may lead to expensive and inefficient business processes To remain competitive, organizations must conduct B2B transactions efficiently by minimizing procurement costs

The goal of trading partner integration is to help organizations establish and manage B2B relationships by automating the exchange of business documents After completing this module, you will be able to:

! Describe B2B e-commerce and the types of relationships between suppliers, buyers, and marketplaces

! Describe the process of selling products to trading partners over the Internet

Introduction

Objectives

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2 Module 1: Introduction to B2B Integration

Lesson: Introduction to B2B E-Commerce

! What Is B2B E-Commerce?

! What Is B2B Trading Partner Integration?

! What Are Marketplaces?

! Types of Trading Partner Relationships

! Indirect Trading Partner Relationships

! Direct Trading Partner Relationships

! Multimedia: How Trading Partner Integration Works

This lesson explores B2B trading partner integration from a supplier’s perspective It describes the roles of suppliers, buyers, and marketplaces in B2B e-commerce relationships By understanding each of these unique roles, you can define the business drivers that determine your design decisions

After completing this lesson, you will be able to describe:

! B2B e-commerce

! B2B trading partner integration

! The function and types of marketplaces

! The two types of trading partner relationships in B2B e-commerce

! The advantages and limitations of indirect trading partner relationships

! The advantages and limitations of direct trading partner relationships

Introduction

Lesson objectives

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What Is B2B E-Commerce?

B2B E-Commerce B2B E-Commerce

Supplier-buyer collaboration

Supply chain management Infrastructure support and management E-procurement and requisitioning

Formation of trading partner business relationships Formation of trading partner business relationships

Electronic catalog design and exchange Order processing integration

Business-to-business (B2B) e-commerce is the electronic exchange of products

or services between businesses B2B e-commerce follows the same basic principles of nonelectronic commerce However, instead of using printed catalogs, paper purchase orders, and other printed business documents, buyers and suppliers perform business transactions through automated processes on networked computers

B2B e-commerce includes:

! Formation of trading partner business relationships

! Electronic catalog design and exchange

! Order processing integration

! Supplier-buyer collaboration

! E-procurement and requisitioning

! Supply chain management

! Infrastructure support and management

Definition

Elements of B2B

e-commerce

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What Is B2B Trading Partner Integration?

B2B Trading Partner Integration

Formation of trading partner business relationships Formation of trading partner business relationships Electronic catalog design and exchange

Order processing integration Supplier-buyer collaboration

B2B trading partner integration is a subset of B2B e-commerce that enables

organizations to create strategic relationships with other suppliers and buyers by automating business transactions Trading partner integration, or B2B

integration, can increase the speed and efficiency of doing business, reduce transaction costs, and add value to the business relationship The process of trading partner integration defines the scope of this course

B2B integration includes the following components:

! Formation of trading partner business relationships One goal of trading

partner integration is the rapid formation of business relationships between suppliers and buyers Formation of these relationships includes discovering potential trading partners, gathering B2B integration information, and creating trading partner agreements

! Electronic catalog design and exchange Suppliers of products and services

must publish electronic catalogs so that their buyers can make purchases The level of sophistication of electronic catalogs varies, depending on the buyers’ needs and the catalog restrictions of the trading partners

! Order processing integration Suppliers and buyers can automate

transactions by creating an infrastructure to transmit business documents securely Trading partners can gain efficiencies and reduce costs by integrating other business systems, such as Enterprise Resource Planning (ERP) systems, in their automated document exchange

! Supplier-buyer collaboration Suppliers add value to their business

relationships by providing their buyers with services, such as direct e-procurement integration or custom order status applications

B2B trading partner integration does not include e-procurement and requisitioning, supply chain management, or infrastructure support and management

Definition

Elements of B2B

integration

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What Are Marketplaces?

Marketplaces bring multiple suppliers and buyers together in a single environment

Marketplaces Descriptions Vertical Industry specific

Horizontal Product or service specific

Private Buyer sponsored

Regional Geographically specific

Aggregator Similar products gathered

Marketplaces are organizations that bring suppliers and buyers together in one

B2B environment Marketplaces assemble buyers with similar needs; they also use a defined set of protocols and business document schemas Marketplaces also recruit suppliers to sell their products and services to this collection of buyers

Typically, marketplaces act as intermediaries in the exchange of business documents A buyer sends its purchase order to the marketplace, which then sends the purchase order to the supplier Marketplaces may also add value by providing services such as auctions, reverse auctions, Customer Relationship Management (CRM), and supplier-buyer collaboration tools

Marketplaces are also called online exchanges, online marketplaces, and e-marketplaces

The following types of marketplaces bring suppliers and buyers together:

! Vertical Serve the needs of a single industry—for example, the airline,

computer, or automotive industry

! Horizontal Serve multiple industries and focus on a few types of products

or services—for example, office supplies or temporary employment services

! Private Are created by a single large buyer to serve its procurement needs

For example, Microsoft Corporation and The Boeing Company both maintain internal marketplaces

Definition

Note

Types of marketplaces

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! Regional Specialize in a specific geographic region—for example, Latin

America or Europe

! Aggregator Create one catalog from catalogs that they gather from multiple

suppliers who sell similar products and services, such as products sold by lot

at a fixed price or at an auction

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Types of Trading Partner Relationships

Direct Relationship

Buyer Supplier

Marketplace

Indirect Relationship

As a supplier, you can interact with buyers indirectly or directly If you work with several trading partners, you may develop both types of relationships There are two types of trading partner relationships:

! Indirect In an indirect trading partner relationship, suppliers and buyers

conduct business through a marketplace

! Direct In a direct trading partner relationship, the supplier and buyer have a

one-to-one integration whereby the buyer buys products or services directly from the supplier A supplier may have direct relationships with many different buyers

In this course, the term trading partner refers to any organization,

whether a buyer or a marketplace, that a supplier conducts business with

Introduction

Types of trading partner

relationships

Note

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Indirect Trading Partner Relationships

Advantages

"Quick time to market

"Mass buyer acceptance

"Value-added business services

"Quick time to market

"Mass buyer acceptance

"Value-added business services

In an indirect trading partner relationship, suppliers and buyers conduct business through a marketplace Marketplaces offer some distinct advantages and limitations compared to direct trading partner relationships

Advantages of using a marketplace include:

! Quick time to market Marketplaces enable suppliers to offer their products

without waiting to plan and develop a solution that is compatible with each buyer

! Mass buyer acceptance In certain industries, marketplaces have established

large customer bases that include numerous potential buyers

! Value-added business services Marketplaces often provide value-added

services, such as auctions, reverse auctions, CRM, and supplier-buyer collaboration tools

Limitations of using a marketplace include:

! High cost of entry Most marketplaces have significant fees for initiation

and usage

! Loss of flexibility Marketplaces define the business rules for the trading

partner relationship As a supplier, you will likely be unable to brand your product and service offerings

! Loss of control over business processes The standardization of business and

technical processes in marketplaces often leaves suppliers with little control

of those processes

! No guarantee of sales to buyers Participation in online marketplaces is just

as competitive as traditional marketplaces No guarantee exists that buyers will buy from you more than from your competitors

Tiêu đề	Module 1: Introduction to B2B Integration
Thể loại	Module
Năm xuất bản	2001

Định dạng
Số trang	26
Dung lượng	1,12 MB