Electronic commerce and the business-to-business customer relationship life cycle

Abstract

<p>The development of relationships has always been important to successful inter­ firm trade. The advent of electronic commerce, supported by interorganizational and internal information systems and the Internet, has increased the pace at which business transactions are arranged and completed, and the size of the potential market has also increased. To establish good relationships between supplier and customer in the face of these changes requires adapting existing practices in marketing, supply chain management, and procurement, to take advantage of the new technologies. To demonstrate the current state of inter-firm relationships, we have developed a seven phase customer relationship life cycle that characterizes the procurement process. We use this life cycle to explain interactions between supplier and customer firms, and the technologies that support relationships during the life cycle. Some of these approaches encourage market-based short term efficient relationships, while others support longer term collaborative relationships. We conclude with some observations that highlight the current and future impact of electronic commerce technologies on business-to-business relationships.</p>