1. Why is Elemica described as an example of an industry consortia net marketplace? How does it differ from other types of net marketplaces like ChemConnect?
2. If you were the owner of a small chemical company, what concerns would you have about joining Elemica?
3. Elemica claims to provide a community for participants in which they can transact, coordinate, and cooperate to produce products for less. Yet these firms also compete with one another when they sell chemicals to end-user firms in the automobile, airline, and manufacturing industries. How is this possible?
4.Review the concept of an industry-wide private industrial network and describe how Elemica illustrates many of the features of such a network.
See the attached file.
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1a. Why is Elemica described as an example of an industry consortia net marketplace? How does it differ from
other types of net marketplaces like ChemConnect?
"Elemica is a B2B industry trading hub aiming to revolutionize the entire supply chain of the chemical, tire and
rubber, energy, and selected manufacturing industries worldwide by creating a "community of suppliers,
customers, and trade partners" who have mutual interests." (12.4 CASE STUDY Elemica: Cooperation,
Collaboration, and Community, (2013) pg 1)
*Elemica provides a system of efficient communication between vendors and buyers within several chemical related
industries, resulting in a great reduction of lost time and errors.
1b.How does Elemica achieve community among a diverse, global collection of firms where firms are often both
customers and vendors to one another?
*The really unusual aspect of Elemica is that the "social glue" bringing members of the community together is
the ability to link together the ERP systems of participating companies. This "super platform" permits the
companies to communicate with one another electronically, and to conduct transactions, handle logistics, and
keep the books. (ibid, 2013, p 1)
"ChemConnect is a leader in helping customers optimize their purchasing and sales processes for chemicals,
plastics, and related products through a unique combination of market information, industry expertise,
e-commerce solutions, and an active network of trading partners. More than 7,500 Member companies in multiple
industries around the world can use ...
The solution discusses cooperation, collaboration and community in Elemica.