What type of e-commerce model involves an industry-created and controlled network linking industry members and a limited number of suppliers?

What type of e-commerce model involves an industry-created and controlled network linking industry members and a limited number of suppliers?

• A. Public marketplace
• B. Industrial consortium
• C. Consumer network
• D. Retail cooperative

Answer: (B)

An industrial consortium is a B2B e-commerce model created and governed by a specific industry. In this setup, industry members—such as manufacturers, distributors, and other players—join a closed network that is controlled by the industry itself, and the network includes a limited number of approved suppliers. This arrangement establishes shared standards, governance rules, and data exchange practices that help members transact efficiently, reduce costs, and maintain quality and confidentiality. It’s a restricted, industry-specific marketplace designed to serve the needs of that industry, rather than a broad open marketplace or a consumer-focused network, and it’s different from a retail cooperative, which centers on joint purchasing for retailers rather than a controlled supplier network within an industry.

An industrial consortium is a B2B e-commerce model created and governed by a specific industry. In this setup, industry members—such as manufacturers, distributors, and other players—join a closed network that is controlled by the industry itself, and the network includes a limited number of approved suppliers. This arrangement establishes shared standards, governance rules, and data exchange practices that help members transact efficiently, reduce costs, and maintain quality and confidentiality. It’s a restricted, industry-specific marketplace designed to serve the needs of that industry, rather than a broad open marketplace or a consumer-focused network, and it’s different from a retail cooperative, which centers on joint purchasing for retailers rather than a controlled supplier network within an industry.