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B2B Exchange

Processing Cost Reduction: Trim processing cost without losing control of the presentation of its brand name or running the risks of rubbing elbows with competitors in an open exchange.

Startup Cost: Whether a company opens its own exchange or joins a consortium, it has to put in much the same work and front roughly the same costs.  But with their own e-marketplaces, companies can offer perks such as better volume pricing, instant inventory checks, and online customer service.  Companies with their own marketplaces also benefit more from the lowered procurement and processing cost that come from the using B2B exchanges.

Sharing Information: Companies with their own systems don't face the hassles that can come from joingin an open exchange  Chief among them:  the struggle to build a consensus among rivals about  business practices or a common technology platform.

Brand dilution: Many companies believe that the power of the brand names will be lost among all their competitors.

Technology: B2B exchanges usually can't let members offer up-to-the minute inventory management or billing systems.

Competition: Any advantage provided by the exchange is available to all rivals.  some fear their customers will jump ship.

Many also worry about sharing pricing and inventory information with competitors.

"We feel that  we're brought down to a common denominator in a public exchange."


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