Managing conflict in B2B e-commerce

Because computers and their linkages are generally faster than humans, B2B e-commerce is more efficient than its phone, fax, and invoice counterparts. At times, the e-commerce arrangement allows firms to bypass some links in the value chain. And, on occasion, the setup allows the buyer to shop electronically for the best prices among suppliers, or to conduct reverse auctions. Despite its accuracy, efficiency, and profitability, however, B2B commerce also has problems. For example, a supplier could lose the electronic order, causing a plant to stand idle for a day. Such problems and conflicts must be solved if B2B e-commerce is to meet its full potential. Luckily, there are some approaches firms can take for their resolution. Along with a brief overview of B2B e-commerce, this article reports and describes some of the problems and conflicts B2B managers may encounter and offers some prescriptions for managers who face those challenges.