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Private exchange and a consortia-based e-marketplace

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According to Bill Paulk, IBM?s vice president of 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, "whichhelped justify the cost," Paulk says. In 1999, IBM invested in E2open, 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?

Reference no: EM131075811

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