Inter-organizational Transaction e-commerce refers to the full spectrum of e-commerce that can occur between two organizations. It is the e-commerce between businesses i.e. the businesses focus on selling to other businesses in the B2B e-commerce.
The term was coined and first employed by Dr. Robert Jacobson, Principal Consultant to the California State Assembly’s Utilities & Commerce Committee, in the title and text of California’s Electronic Commerce Act, carried by the late Committee Chairwoman Gwen Moore (D-L.A.) and enacted in 1984.
There are many organizations and there is a variety of transactions that take place. The organizations range from a large supermarket chain down to a local corner shop.
Moreover, they offer many secondary services for integrating purchasing, distribution, and inventory processes, streamlining the entire transaction process. Thus, it allows for better inventory management, quality control, and supply chain processes.
Business organizations are constantly buying and selling goods and services. Shops buy products in bulk from their suppliers and sell those goods in small quantities to their customers.
Inter-organizational e-commerce refers to the full spectrum of e-commerce that can occur between two organizations. It is the e-commerce between businesses i.e. the businesses focus on selling to other businesses in the B2B e-commerce.
The type of transaction that takes place and how it is executed depends on the size of the business involved, the nature of the business, and the norms of the particular trade sector.
A variety of transactions that can take place are:
- Discrete transactions of commodity items.
- Repeat transactions of commodity items.
- Discrete transactions of non-commodity items.
An electronic market is an inter-organizational information system that allows the participating buyers and sellers to exchange information about prices and product offerings.
Electronic markets provide an efficient search mechanism to compare commodity product offerings and find a suitable supplier.
Many electronic markets also offer additional services, such as payment or logistics services that help member complete a transaction.
Electronic Data Interchange (EDI):-
Electronic data interchange (EDI) is the electronic exchange of business documents in standard, computer-processable, universally accepted format between the business partners.
EDI comes into its own once the supplier has been located and terms of trade arranged.
In addition to the large and regular purchases, organizations will be making once-off, consumer-style purchases e.g. stationery purchases.
Such purchases are not the subject of electronic markets and probably do not justify an EDI system but they can be undertaken using e-commerce facilities on the internet.