Article at a glance:

The unexpected return of B2B

Open business-to-business marketplaces fulfilled many suppliers' worst fears about e-commerce by failing to deliver the promised volume and liquidity. Recently, however, B2B exchanges have made a comeback, in the form of private exchanges—and this time, suppliers might actually benefit. These invitation-only networks connect a single company to its customers, suppliers, or both. By providing secure one-on-one communication, private exchanges can enhance shared supply chain processes such as inventory management, production planning, and order fulfillment.

The take-away

During the next three years, private exchanges will garner up to 90 percent of new investment in marketplace infrastructure. To benefit, suppliers will have to assess their supply chain power and their technical capabilities and then decide whether to join existing exchanges or to build their own.