At worst, a firm can use a web-interface to submit requests for quotations or bids and interact with its supply chain partners. EMPs, in comparison, were conceived for the purpose of facilitating collaboration and connecting the demand side to the supply side to facilitate market mechanisms previously used only offline.
The last category of decision variables, the costs and benefits of the two technologies, is mostly quantitative in nature.
In the fourth section, we introduce a qualitative and quantitative decision model Elemica vs chemconnect help in making a selection using the decision criteria identified in the previous sections.
Should it implement a potentially costly ERP system when anecdotal evidence suggests that many firms achieve a negative return on such an investment  and that ERP implementations have been difficult and come with uncertain benefits ?
By Aprilmore than 1, exchanges were active . ERP systems versus EMPs needs to also consider a firm's competitive advantages  which are vital to a firm's long-term survival. For example, ChemConnect charges between 0. The information technologies that facilitated these changes originally comprised electronic data transfer, then materials or enterprise resource planning systems and, more recently, electronic marketplaces EMPs .
All correspondences in the supply chain are managed by one company thereby easing communication. In addition to reducing the transaction costs, reducing errors due to the partial automation of processes, and extending market reach, using an EMP's negotiation or auction functionality as well as order aggregation M.
The sum of the selected functionalities must be at least as great as the required functionality, Lk. How is this possible?
Once this model has been applied, the quantitative decision model may be used for the selection of an operational solution. They were incepted well after the advent of the internet. As a small firm, you would be concerned that you would be able to respond to requests for large quantities of commodities that might be requested by partners.
In contrast, using an EMP provides access to external capabilities. In addition, a constraint may be added that takes into account the user-friendliness of the systems under consideration. In the s, manufacturing resource planning MRP II systems integrated MRP functionality with a firm's financial and marketing systems , thus reducing the need for multiple data entry and improving data accuracy.
Number of ERPs to be selected Number of EMPs to be selected Clearly, since some firms pick and choose modules from different ERP systems and many more subscribe to a few EMPs at the same time, the number of options investigated k is large and, hence, a direct enumeration of possible solutions becomes tedious even for smaller problem sizes and nearly intractable for large problems.
Kim Lastly, starting out from the Island state, a firm may directly progress to the Fully Integrated state. For example, if the firm's pre-selected options contain an ERP system and an EMP whose sourcing functionalities overlap, this fact would be reflected in the interaction term to ensure that those functionalities are not double counted.Why is Elemica described as an example of an industry consortia net marketplace?
How does it differ from other types of net marketplaces like ChemConnect? Now the reason why Elemica is described as an example of an industry consortia net marketplace is because of the type of ownership. The reason is. ChemConnect is buying CheMatch in an all-stock deal.
The combined company will be based in Houston and have 80 employees (half of the current total). ChemConnect's current CEO, John Robinson, will remain at the helm of the merged company, but the executive team will combine executives from both organizations.
The total nominal transaction volume for the two companies was $4B in and is. ChemConnect's lack of support for catalogues and some other services available through the software makers and Covisint points to its purely public nature and stems from its history as a match maker rather than a strong provider of transactional capabilities.
1. Why is Elemica described as an example of an industry consortia net marketplace? How does it differ from other types of net marketplaces like ChemConnect?
ChemConnect is opposite of Elemica, it is actually privately owned by one person.
They do have a 3rd party firm that offers a bidding platform for chemical firms and delivers software to organize communications amongst the contestants in the platform. Elemica is a hub that allows a company to transact with all other linked buyers and sellers who already have contracts in place.
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