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Ford AutoXchange B2B Marketplace
Transcript of Ford AutoXchange B2B Marketplace
What is the case about ?
: a B2B "electronic marketplace" initially developed by Ford
: rationalize the supply chain process by reducing the intermediaries and creating the transparent marketplace
Q1: Who do you think would pay the cost for suppliers to put their parts catalogs onto these marketplaces like AutoXchange? Who should have paid the costs
Q2 : What were the benefits of these systems and who would reap them?
Q3 : Why did the Federal Trade Commission open an investigation of these market places?
Founded by MR Henry FORD and incorporated on June 16, 1903
Brands : Ford, Lincoln, Aston Martin
- Total Revenue in 2013 was 139,369
- 5th largest automaker worldwide
- Ranked 25th on the Fortune 500 List in 2011
Reduce the cost
Improve the quality of their products
Prevent from the out-of-stock situation (just-in-time strategy)
B2B E-Marketplace Evolution
Ford, General Motors,
The three giant automobile enterprises
Encourage their suppliers to use this platform
Suppliers should have paid th costs as users of a information system service
Reduce the cost
Optimize the inventory
Whether AutoXchange has antitrust issues
Fear to create a monopoly and price fixing
Ensure fair competition
Threat to squeeze smaller suppliers out of business
Q4 : What role do you think the technology played in the demise of these systems?
-Transparent,open and competitive marketplace: real-time information
-Optimizing the supplier chain?
-Redeployed in partly open marketplace
Q5 : Why would more “closed” private market places be attractive to both the industry giants who buy the parts, and the suppliers?
Loyal relationship between suppliers and automakers
Focus on quality and flexibility
Protect suppliers’ privacy