Private marketplaces will involve one or many enterprises with the goal of reducing overall procurement costs. Sell - An enterprise must also make its goods or services available for sale. Selling is the output of an enterprise as it offers its goods or services to the marketplace. This is the supply or sell-side of the equation. As with any distribution channel, a cohesive strategy is critical to extract the maximum performance.
Internet marketplaces are a new distribution channel for enterprises to utilize.
Public marketplaces present a venue where goods or services can be placed in the market and governed by specific business rules. If an enterprises wishes to distribute commodity-type goods without compromising their brand, they can participate in a public marketplace on an anonymous basis. Conversely, private marketplaces enable close collaboration between the enterprise and a buyer or group of buyers. As with sourcing, sell-side private marketplaces will involve one or many enterprises working together to reduce costs and maximize efficiencies. This is the management of information to drive customer loyalty and manage vendor relationships.