According to Bill Paulk IBM?s vice president of e-marketplaces “IBM hassaved about $1.7 billion since 1993 by being able to divulge sensitive price and inventoryinformation over a private exchange built for 25 000 suppliers and customers.” As the host ofthe exchange the company helped defray the cost of connecting suppliers. The payoff: On-time delivery to customers soared from about 50 percent to close to 90 percent “whichhelped justify the cost ” Paulk says. In 1999 IBM invested in E2open a consortia-based e-marketplace for the electronics industry. Why do you think IBM needs both a privateexchange and a consortia-based e-marketplace?
