Revisiting the Value Proposition of E-Marketplace Connectivity

In recent years there has been a broad shift towards the sophisticated adoption of supply chain integration and e-commerce (EC) techniques by leading logistics enterprises. A central element of this move has been the evolution of e-marketplaces or trading hubs and portals, which it is suggested, are able to provide effective enabling mechanisms for achieving synthesis between a wide range of collaborating partners and systems within value chains. To succeed in these contemporary environments enterprises, need not only to be highly capable of business excellence, but masters of process and systems integration. However, the problems associated with ‘complexity and scope’, undertaking ‘cost/benefit analysis’ and ‘value proposition evaluation’ remain. This paper describes and reports upon research and findings revealed during the implementation of an EC-based supply chain project by a leading international enterprise. General requirements for effective financial management within this area are considered and the industrial requirements for Information Technology (IT) system integration classified. Furthermore an analysis of an approach to e-marketplace connectivity and the implications of this are considered, prior to a choice of methodology for an industrial case study.