IBM: Private Exchange/Consortia Based E-Marketplace
e-marketplaces. “IBM has saved about $1.7 billion since 1993 by being able
to divulge sensitive price and inventory information over a private exchange
built for 25,000 suppliers and customers.
” As the host of the exchange, the company helped
defray the cost of connecting suppliers. The payoff: On-time delivery to
customers soared from about 50 percent to close to 90 percent.
“which helped justify the cost,” Paulk says. In
1999, IBM invested in E3open, a consortia-based e-marketplace for the
electronics industry. Why do you think IBM needs both a private exchange and a
consortia based e-marketplace?
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