B2B e-marketplaces in the airline industry: process drivers and performance indicators

Claudia-Maria Wagner, Bernd Huber, Edward Sweeney, Austin Smyth

Research output: Contribution to journalArticlepeer-review

Abstract

Competitive pressures are increasing within and between different strategically oriented groups of airlines. This paper focuses on the level of efficiency improvements gained by using e-Marketplaces in the procurement process. Findings from a survey among 88 international airlines reveal that the use of Business-to-Business (B2B) e-Marketplaces does play different roles across the various airline groupings. Airlines that are involved in strategic alliances show higher joint procurement activities than airlines that are not involved in strategic alliances. However, alliances are probably viewed as loose arrangements and thus airlines may be reluctant to share information on procurement prices and processes with another airline that could also be acting as a competitor. The financial involvement in or initiation of e-Marketplaces by airlines is very low. Low cost airlines show high use of e-Marketplaces, but demonstrate little financial involvement in contrast. Overall, the categories of spares and repairs, office supplies, tools and ground support equipment (GSE) show the greatest potential for reducing costs and increasing procurement process efficiencies. The intense competitive pressures facing carriers will make their search for tools to realise even incremental savings and efficiency gains ever more urgent. There is evidence that e-Marketplaces are one tool to improve such performance indicators.
Original languageEnglish
Pages (from-to)283-297
Number of pages15
JournalInternational Journal of Logistics
Volume8
Issue number4
DOIs
Publication statusPublished - 2005

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis in International Journal of Logistics Research and Applicationson 2005, available online: http://www.tandfonline.com/10.1080/13675560500407390

Keywords

  • airline industry
  • B2B e-marketplaces
  • competitive advantage
  • e-procurement

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