The impact of e-marketplace on the B2b relationships

Abstract

PurposeConsidering the growing momentum of online marketplaces worldwide, the purpose of this paper is to develop a model to identify the main activities impacted by the implementation of an e-marketplace in the business-to-business relationship and assess the savings on costs for the main actors involved (i.e. manufacturer, distributor and retailer).Design/methodology/approachThe methodology used in the study is a quantitative one. The analytical model used to evaluate B2b e-marketplace's impacts followed three main steps: (1) model settings and general assumptions, (2) cost structure and (3) model simulation.FindingsThe findings reveal that beyond stock-out costs and inventory levels also other operating costs (i.e. transportation, penalty and administrative costs) play a significant role in determining overall impacts of B2b e-marketplace, and as such should be considered by managers in their process of e-marketplace evaluation, selection and performance optimisation. The model shows that compared with the offline scenario the B2b e-marketplace is expected to bring value to the overall supply chain, which tends to increase as the share of e-sales penetration is increased, ranging from a cost reduction of 0.1% (€ 229.2k) in the base-case of 10% e-sales adoption, up to 0.9% (€ −2.2 M) in case of full e-marketplace adoption.Originality/valueThis study aims to shed light and foster the adoption of B2b e-marketplace by providing some practical tools to support (1) research in future studies, filling the existing gaps on the topic, and (2) managers in the process of adoption and execution of e-sales through online marketplaces.