III.c. Linking into B2B Supply Chains: E-COMMERCE AND SMALL ENTREPRENEURS
III.c. Linking into B2B Supply Chains: E-COMMERCE AND SMALL ENTREPRENEURS
employment still holds vast potential for raising living standards of the poor. To what extent
can the Internet and e-commerce serve to raise productivity and competitiveness in the
industrial sectors of developing countries? If entry barriers have been reduced in the B2C
market, does the same hold for B2B marketplaces? There is reason to suppose it does,
though perhaps not to the same degree. Companies primarily in the business of making
products for sale to other companies generally do not require the same sort of advertising
presence as those selling to consumers. In that sense, small producers of intermediate
products in developing countries may not derive the same benefits as traditional artisans
from being able to advertise their wares on the Web. On the other hand, such enterprises
clearly need to make contact with potential business customers and to convince them of
their capacity to supply products to specification, on time, to an acceptable standard of
quality and at a competitive price. The Internet does almost certainly make this process
easier. Indeed, in principle access to the large B2B portals being established by OECD-based companies in sectors as diverse as auto parts, steel, and chemicals is open to any
potential supplier on an equal basis, regardless of location. Naturally, though, online market
access cannot on its own open opportunities to developing country suppliers lacking access
to adequate transport and logistics infrastructure to ensure reliable delivery.
Not only is the SME with a Web presence more likely to be discovered than one
without, but Internet savvy may itself be a signal to potential customers of a certain level of
technical and commercial sophistication. A typical global supply chain involves multiple
transactions: if at any point an electronic interface is not present, then the time and cost
advantage of e-commerce is dissipated. Thus, international companies are unlikely to go
to the expense of dealing with the non-Internet-capable supplier unless there are significant
other cost advantages of doing so. In short, if some SMEs in developing countries cannot
afford the costs of entry into the electronic marketplace, neither can they afford not to
enter if they aspire to membership in international supply chains.
OECD DEVELOPMENT CENTRE
Working Paper No. 164
E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES
by
Andrea Goldstein and David O’Connor
IIIc Linking into B2B Supply Chains ECOMMERCE AND SMALL ENTREPRENEURS - To learn more about this author, visit OECD Development Centre's Website.
Like this article? Share it with your friends
For countries undergoing rapid structural transformation, the expansion of industrial
employment still holds vast potential for raising living standards of the poor. To what extent
can the Internet and e-commerce serve to raise productivity and competitiveness in the
industrial sectors of developing countries? If entry barriers have been reduced in the B2C
market, does the same hold for B2B marketplaces? There is reason to suppose it does,
though perhaps not to the same degree. Companies primarily in the business of making
products for sale to other companies generally do not require the same sort of advertising
presence as those selling to consumers. In that sense, small producers of intermediate
products in developing countries may not derive the same benefits as traditional artisans
from being able to advertise their wares on the Web. On the other hand, such enterprises
clearly need to make contact with potential business customers and to convince them of
their capacity to supply products to specification, on time, to an acceptable standard of
quality and at a competitive price. The Internet does almost certainly make this process
easier. Indeed, in principle access to the large B2B portals being established by OECD-based companies in sectors as diverse as auto parts, steel, and chemicals is open to any
potential supplier on an equal basis, regardless of location. Naturally, though, online market
access cannot on its own open opportunities to developing country suppliers lacking access
to adequate transport and logistics infrastructure to ensure reliable delivery.
Not only is the SME with a Web presence more likely to be discovered than one
without, but Internet savvy may itself be a signal to potential customers of a certain level of
technical and commercial sophistication. A typical global supply chain involves multiple
transactions: if at any point an electronic interface is not present, then the time and cost
advantage of e-commerce is dissipated. Thus, international companies are unlikely to go
to the expense of dealing with the non-Internet-capable supplier unless there are significant
other cost advantages of doing so. In short, if some SMEs in developing countries cannot
afford the costs of entry into the electronic marketplace, neither can they afford not to
enter if they aspire to membership in international supply chains.
OECD DEVELOPMENT CENTRE
Working Paper No. 164
E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES
by
Andrea Goldstein and David O’Connor
IIIc Linking into B2B Supply Chains ECOMMERCE AND SMALL ENTREPRENEURS - To learn more about this author, visit OECD Development Centre's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to OECD's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
|
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Creating Rapport Guide Leadership Training Hospitals Zero Based Budgeting The Evolution Of Networking Termination Suit |
|
 | ||
 |
Top 50 Productivity Blogs
Top Blogs To Watch In 2009 | |
 |
Top 50 SEO Posts - 2007
Top SEO Posts of the Year | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
