The push used to start with suppliers, who sent raw materials to manufacturers, who sent goods to distributors, who fed retail customers, who sold to consumers. That was great for some. They got to control production, inventory, and price. But it wasn't so great for everyone. Here's how it works now.
Users pull services out of suppliers.
United Technologies, for instance, used to spend months negotiating with dozens of vendors for circuit boards. But last year they quit. They just asked for bids on a Web site called FreeMarkets OnLine. The benefits go both ways. For instance, these days, customers like Delta, who own Boeing airplanes, can order spare parts on the Web.