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. Dynamic trading allows bundling services to the benefit of all concerned. Cooperation between companies in an e-business ecosystem is much different than the concept of a single company trying to dominate all aspects of production and sales. Networks tend to be more efficient because they enable open competition as well as open information. Each link in the corporate network will have its own competence that gives them a competitive edge.