Horizontal E-Markets

Horizontal trading communities, on the other hand, cut across the boundaries of industries and focus on broad categories of goods—office supplies, furniture, travel services, janitorial help—that are common to large numbers of cross-industry organizations. Horizontal e-markets are often sponsored by e-procurement software groups or leaders in specific areas of these types of indirect goods and service provision. Horizontal exchanges have, at least in the past, been driven primarily by indirect materials and tend to develop in highly fragmented markets.

W.W. Grainger, the powerful MRO supplies group, provides a perfect example of the horizontal trading community. Their exchange, OrderZone.com, went online in May 1999, and ...

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