Question- Discuss buyer-oriented marketplace (e-procurement).

Ans.

 Buyer-oriented Marketplace
(e-Procurement)

Buyer Oriented marketplace is a type of model. Buyer has his own market place or e-market. He invites suppliers to bid on product's catalog. Buyer opens a bidding site. In this model, there are few buyers and many suppliers. The buyer has his / her own online marketplace. It then invites suppliers and manufacturers to display their products. Buyers search in electronic stores in malls and markets for similar service providing products and compare them. So the buyer company makes it simple by opening a bidding site where a particular product is available from different sellers at different prices.

Characteristics of the Buyer-Oriented Marketplace : These are as under:

1. Offers Great Potential : By supporting transactions and procurement processes, the buyer-oriented marketplaces offers great potentials in cost savings.

2. Found in Industrial Sector : Buyer-Oriented Marketplaces are found in industrial sectors with few and dominant buyers.

3. Certain Elements : Certain elements of buyer-oriented marketplace are as under:

(i) Informational support of negotiations,

(ii) Invitation to bid in auctions and submissions,

(iii) Delivery inspection,
(iv) Quality management,
(v) Guidelines for transactions,

(vi) Internet-based product and supplier catalog availability check, (vii) Catalog ordering,

(viii) Support of transactions, etc.

GE's electronic bidding site is a successful example of a buyer-oriented marketplace which goes by the name of GE TPN Post. Buyers pay a nominal fee for using the site. After that, the buyers post their project information on site. Potential suppliers download the project information and submit bids for the project. Buyers compare the suppliers' bids. This helps buyers to build new partnerships with sellers and receive and compare different bids and negotiate for better prices. Sellers get a communication platform which has large-scale buyers and thus, in turn, expand the market with low costs.

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