The issue of how smaller suppliers should deal with these larger exchanges was highlighted by a company at the conference that supplies airline interiors. I do believe that such a system could be used by a larger firm to get smaller suppliers to quote at figures below what they would normally offer, because they are in competition. Many B2B exchanges have not gone far beyond the evaluation phase, but with massive economies of scale available to those that succeed, their widespread use may be inevitable. Industry leaders and the exchanges being created by IT vendors such as Cisco and Intel look likely to set the standards in the months and years to come. Some companies are reluctant to join because they believe they will be forced to lower their profit margins and will receive little benefit in return.
Analysts predict a shakeout among early online marketplaces.
Legal difficulties in trading across borders and the lack of a standard approach to building B2B systems also create problems for companies wanting to use online marketplaces. Leading technology companies Cisco and Intel are building up online exchanges, and if they are successful they may provide a model for others to follow. Given the potential economies offered by online marketplaces, their widespread use may be inevitable in the long term.