E‐marketplaces and the future of supply chain management: opportunities and challenges

E‐marketplaces are one of the relatively new trends that are affecting buyer‐supplier relationships. Although there have been several failures in the e‐business arena, whether it is business‐to‐business (B2B) or business‐to‐consumer (B2C) e‐commerce, there is no doubt that the Internet has changed the way that business is done in several ways. It has been shown that electronic commerce can fundamentally change the inter‐organizational processes involving buyer‐supplier relationships. It reshapes these buyer‐supplier relationships, improves a business's core processes, and helps reach new markets or segments through the electronic medium. This paper discusses the opportunities and challenges facing e‐marketplaces today, and also the concerns facing potential participants in these e‐marketplaces who are trying to weigh the risks presented by such participation and the possible benefits that can be reaped by streamlining supply chain processes. Some of the major concerns facing existing and potential buyers and suppliers that are discussed in this paper include integration issues, security issues and antitrust issues.