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116 Kot, S.; Grabara, J.; Sandu, M.; Mihăilescu, M. efficiencies in the purchasing process, improved supply market knowledge and visibility, and improved aggregation and control of spend across the firm. Suppliers looked to e-marketplaces to discover new markets and customers for their products. The rapid expansion in the number of e-marketplaces with overlapping service offerings created a clouded picture of the e-marketplace landscape (Grieger, 2003, p.280). Generally, there are three types of e-marketplaces (Dawei & Jiju, 2003, pp.173-179): marketplaces based around a specific industry sectors; marketplaces based around products and services; marketplaces focused on the functions. Marketplaces based around a specific industry sectors are called vertical marketplaces. Petroleum industry is an example. We can point on the Chevron’s Petrocosm with Texaco participation and BP Amoco marketplaces as the examples those help buyers source goods and services that are largely specific to industries. The type of marketplace which is formed around a wider supply market that cuts across several industries is called horizontal marketplace. Examples include the marketplaces for maintenance, repair and operating (MRO) goods such as safety and office supplies. The value of the horizontal marketplaces is that they efficiently match the needs of the one with the offerings of the other. The marketplaces focusing on functions gain value from concentrating functional capabilities and quality services. For example they help HR departments manage employee benefits; help companies dispose of excess inventory and so on. There are many benefits to be gained by companies trading across the Internet through the e-marketplaces. The three main ways of creating value through B2B marketplaces: - B2B marketplaces expand everyone’s market reach. Without B2B marketplaces, buyers can have great difficulty finding suppliers with the right equally encounter difficulties in finding motivated buyers. - B2B marketplaces generate lower prices for buyers. The price improvements for the buyers result from ability of buyers to reach more suppliers or the most efficient supplier as well as from increased price competition and in some cases, access to excess inventory stocks. - B2B marketplaces cut the costs of buyers’ operations. Most B2B companies now provide services that cut the costs of B2B procurement processes, which traditionally consume much staff time and effort. However application of B2B trade does not give the foreseen profits in every case, the reasons of marketplace fails can be as follows: - A B2B exchange cannot wring huge efficiencies out of all elements of supply chain. B2B exchanges can have no impact on certain supply in its physical goods flow. There is still need for organizations to keep surplus inventory to meet any unanticipated demand until more components arrive from the suppliers. - B2B exchanges have perceptual certain inefficiencies by failing to realize that the same supply chain segment in the different industries and different supply chain in the same industry, may require different improvement levels. - Organizations fears of sharing information freely, seriously inhibits adding value. Although the information can benefit the other members of supply chain, the fear
Trust in B2B e-Marketplaces 117 of losing crucial competitive advantage leads companies owning the information refusing to share information (of forecast, products life cycle and bills of material) freely. 2. B2B E-MARKETPLACES DEVELOPMENT Since the beginning, B2B exchanges have had a tremendous growth, Goldman, Sachs and Co. had projected that US B2B sales on the Internet would reached $1.5 trillion by 2004 compared with $114 billion in 1999. The growing interest in B2B e- business is also reflected by the fact that in 1999, venture capitalists poured $17 billion into B2B endeavors, compared with $11 billion in Business-to-Customer (B2C) ventures 2 . Real growth of B2B sales has met above mentioned forecasting. In 2003 US B2B exchanges was estimated on $1,33 trillion. The largest participation in this amount had B2B platform trading computing and electronics, motor vehicles, petrochemicals and utilities. Despite of rising trade value reached via B2B platform we can observe that since 2000, a consolidation process has started which seems not yet fully completed. It is estimated there were around one thousand B2B e-marketplaces world-wide, with about 300-500 active in Europe in 2002 and about six hundred and three hundred in 2010 (Table 1). Table 1. Estimated numbers of active B2B marketplaces by region of activity Active in Berlecon Research eMarketServices 4/2002 2/2003 4/2002 6/2010 World 1060 889 1189 615 North America 669 556 619 274 Europe 381 324 540 307 Sources: B2B marketplace databases from Berlecon Research (www.berlecon.de ) and eMarketServices (www.emarketservices.com) *Note: The regional information denotes activity within the respective region, not necessarily the headquarters. Concerning the usage of B2B Internet trading platforms by enterprises, the e- Business W@tch reports for the 4 largest EU Member States (Germany, France, UK and Italy) that around 5% of European enterprises used e-marketplaces in mid-2002 and early 2003 and that a further 3-4% are planning to do so in the near future. These figures suggest that the overall impact of B2B e-marketplaces is still relatively low, but considerable differences exist between different industry sectors. In the Information and Communication Technologies (ICT) services sector, for example, 7-12% is regularly trading via e-marketplaces, while a further 6-9% has reported that they are planning to do so. Also the tourism industry shows an aboveaverage use of e-marketplaces. It is also interesting to note that the plans to use e- 2 “To B2B or not to B2B” U.S. News & World Report (2000, February 7)
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