Industry Consortium vs. Private Company Marketplace?

Have you ever wondered the difference between Private Company Marketplaces and Industry Consortia-sponsored Marketplaces?  I will explain the differences and similarities of both.

Private Company Marketplace

Electronic Commerce states " private company marketplace is a marketplace that provides auction, request for quote postings, and other features (many of which are similar to those of e-procurement software) to companies that want to operate their own marketplaces."  United Technologies was one of the first companies to start a private company marketplace in 1996. 

• One buyer, many sellers
• Harley Davidson, supply net
• Sellers bid on major buyer's business

 

Industry Consortia-Sponsored Marketplaces

Electronic Commerce states "is a marketplace formed by several large buyers in a particular industry".   One was the first created was in 2000 by Covisint.  Included was DaimlerChrysler, Ford, and General Motors.   Another example was the hotel industry including Marriott, Hyatt, and three other major hotel chains created the Avendra marketplace.

•  Few buyers, many sellers
• Covisint, Exostar
• Buyer control
• Fixed pricing

Thank you to the below resource:
Schneider, Gary. Electronic Commerce.