Partners who are not in the information loop or who hoard information lose vital speed to other e-business networks. Usually there is a hub company that organizes a focus for business. The hub company out sources its manufacturing and distribution to trusted partners. Their suppliers post quotes and forecasts on Cisco s website each quarter which is a form of bidding. But the lowest offer is not always accepted.
Cisco works closely with suppliers to be sure they are profitable.
For example, their website helps suppliers keep stocks low and Cisco pays them within days and invites supplier input during the design phase of new products. The Internet s key role is allowing company networks to form a customized response to current demand. This is called dynamic trade and expands the customary buying and selling of goods into the realm of customer services. Customized responses can greatly leverage value to buyers and sellers. The sale of an airline ticket on-line offers the potential for arranging related services like hotel bookings, car rentals, insurance, entertainment, flowers, or currency transactions.