Author Question: In one or two paragraphs, describe the key elements of an independent industry ... (Read 39 times)

Kikoku · **on:** Jul 7, 2018

In one or two paragraphs, describe the key elements of an independent industry marketplace.

Question 2

In a paragraph or two, explain how the Web helps build and maintain trust among participants in a specific supply chain.

kkenney · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

In the late 1990s, a number of industry-focused hubs opened and began offering marketplaces and auctions in which companies in the industry could contact each other and transact business. The idea was that these hubs would offer a doorway (or portal) to the Internet for industry members. Because these hubs were vertically integrated (that is, each hub would offer services to just one industry), they were called vertical portals, or vortals.
The first vertical portals were trading exchanges focused on a particular industry. These vertical portals became known by various names that highlighted different elements of their collective nature, including industry marketplaces (focused on a single industry), independent exchanges (not controlled by a company that was an established buyer or seller in the industry), or public marketplaces (open to new buyers and sellers just entering the industry). These portals are also known collectively as independent industry marketplaces.

Answer to Question 2

The major issue that most companies must deal with in forming supply chain alliances is developing trust. Continual communication and information sharing are key elements in building trust. Because the Internet and the Web provide excellent ways to communicate and share information, they offer new avenues for building trust. Most procurement professionals have built trust on years of doing business with the same vendors. In many industries, vendors send sales representatives to call on buyers regularly. Vendors also participate actively in trade shows and conferences. By giving buyers frequent opportunities to interact with vendor representatives, vendors help build trust.

Vendors are finding that the Web gives them an opportunity to stay in contact with their customers more easily and less expensively. Although most buyers still see vendor sales representatives regularly, e-mail and the Web give them nearly instant access to their sales representative and other vendor personnel. By providing comprehensive information at a moments notice, vendors can build buyers trust in the vendors ability to deliver products and provide the personalized service that buyers need.