#5110. Procurement competition in the presence of IoT-enabled B2B E-commerce

July 2026publication date
Proposal available till 18-05-2025
4 total number of authors per manuscript0 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Management of Technology and Innovation;
Computer Networks and Communications;
Computer Science Applications;
Marketing;
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Abstract:
The Internet of things (IoT) has accelerated the development of e-commerce and enabled business-to-business (B2B) spot markets to emerge. This study considers a supply chain composed of one supplier and two manufacturers. Two manufacturers can procure raw materials from dual sources, that is, from a supplier with a forward contract or from a B2B spot market. On the basis of the procurement strategies of two manufacturers, three competition structures exist between the manufacturers: both manufacturers procure raw materials only from a B2B spot market; one manufacturer procures raw materials from dual sources, namely, a forward contract and a B2B spot market, while the other manufacturer only obtains them from a B2B spot market; and both manufacturers procure raw materials from dual sources. Our study finds that the optimal setting is for manufacturers to procure raw materials from dual sources if and only if the spot price uncertainty exceeds a threshold value. Whole downstream manufacturers can benefit from the strategy if the suppliers risk aversion exceeds a threshold value.
Keywords:
B2B spot market; Dual sourcing; Procurement; Supply chain management

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