Obvious Reasons to Love and Hate Collaborative Commerce


Collaborative Commerce describes the cooperation between trading partners in the supply chain. Enabled by the Internet and integration technologies, it has created new ways for business partners to work together. Companies now exchange proprietary data, manage projects and cooperate on product design through web servers. That being said, the case of the success and profitability of collaboration is already won.

Why do people love collaborative commerce? Let us count the ways.

  • Collaborative commerce results to a transparent and seamless business chain.
  • It encourages innovation.
  • It reduces time to market.
  • It concentrates on core competencies.
  • It reduces inventory by announcing actual demand.
  • It speeds up business cycle times.
  • It cuts down cost of transaction.
  • It results to higher levels of customer satisfaction.

Transparency has forged better business relationships not only between partners, but among suppliers and customers as well. It allows flexibility in the course of disruptions and encourages innovations in the upsurge of new needs. Moreover, it offers the ability to deliver prognostic and dogmatic analytics in the supply chain. When companies deal with their suppliers in a uniform way, it can increase its efficiency by automating the flow of paperwork.

Collaborative commerce allows you to design products that meet your customers’ needs. It also allows you to bring them to the market quickly, have a head start on your competitors and achieve higher satisfaction levels. However, it also offers some disadvantages.

  • It can be cost intensive for small and medium-sized businesses.
  • It is a new concept. Not all people know, understand and accept collaborative commerce.
  • Since it reduces competition, it may reduce innovation.
  • It fosters dependency from partners.
  • It requires strong personal relationships.

Collaborative commerce improves competitiveness among partners and competitors. It provides your company competitive advantages through faster time-to-market, reduced inventory, and higher innovation rate. It improves processes along the supply chain and leads to higher customer satisfaction. Undoubtedly, these pros outweigh the above cons.

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Charlie Alsmiller

Throughout his career, Charlie Alsmiller has focused on customer problems in difficult industries such as Energy and Telecommunications. Prior to starting Appterra in 2005, Alsmiller was VP of Global Operations for Allegro Development, a leading provider of software for the energy sector. He has also served as president of OmniSpace Technologies, a leading SaaS provider that he founded in 1999. He spent over 10 years in the consulting world with Price Waterhouse and Deloitte Consulting, where he participated in a wide variety of projects for very high profile clients. Mr. Alsmiller holds a BBA from Baylor University in Management and Information Systems and a MBA from the University of Dallas in International Business. Specialties: Technology ventures, Enterprise Software, Contract Negotiation, International Operations, Private Equity, Product Management, Strategic Alliances, Software Implementation, Software Development

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