Evolution in B2B exchanges

In the B2B space, infomediaries - in the guise of the next generation of trade exchanges - will:

change the balance of power in entire sectors by aggregating the purchasing and selling power of large numbers of small companies;
foster (rather than destroy) supply chain relationships for collaborative development, innovation and the creation of 'competitive edge';
offer options to manage the risk associated with 'just in time' approaches to inventory management;

"Covisint" represents a key test case

E- business is not about incremental improvement; e- business is a fundamental redesign of the enterprise. Web sites that offer incremental solutions for isolated aspects of your business do not enable you to reap the full benefits. Covisint will address your entire business, link you to the entire industry, and provide a foundation to accelerate you into operating at Internet speed.1

In the B2B space, infomediaries - in the guise of the next generation of trade exchanges - will also:

maintain online registers for the location of scarce resources or high value spare parts;
support escrow accounts as part of a payment offer in order to transfer payment upon agreed fulfilment;
develop anonymised and accurate market intelligence based on aggregated actual purchasing behaviour;
help to manage exchange rate risks; and
provide real-time on-line credit search for accreditation of third parties;

Almost every sector now has competing trade exchanges

In the B2B space, infomediaries - in the guise of the next generation of trade exchanges - will also:

maintain current rankings for fulfilment companies, e.g. similar to triple AAA etc. ranking of banks and financial institutions;
provide general terms and conditions for transactions as supported by a particular industry body;
help to manage exchange rate risks; and
maintain detailed audit trails;

1. Source: www. covisint. com

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