The emerging B2B electronic
commerce market can be described as frictionless, because no faxes,
phone calls or paper trails snake back and forth to clog the communication
It is no longer business
to business as usual. The cause is Dynamic Trade. Every
Web efforts extended traditional trade with reams of accessible
product data, 24-hour, seven-day shopping hours and basic customer
self-service. Dynamic trade goes much further, enabling companies
to create product and service bundles based on consumer preferences
and use real-time transaction data to adjust to market changes.
Dynamic trade is far more than taking orders on-line. It fundamentally
changes how companies view products, production and pricing. As
the economy moves to dynamic trade, the emphasis will shift towards
delivering such customised services as assisting consumers and
managing inventory for business partners.
As on-line purchasing and
extended supply chain management take hold, companies will be
able to respond and raise or lower prices on a minute-by-minute
basis. Tiered pricing models that reward customers for buying
on-line or accepting off-peak-hour delivery will become the norm.