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sites of buying firms can also be an outlet for publicizing supplier diversity efforts.
This study examines Web-based supplier communications. The public Web sites
of each of the firms on the 2000 Fortune 500 list were examined for majority, or primary,
supplier communication and supplier diversity content. The objectives of the study are to
describe and then categorize Web-based supplier communication and supplier diversity
content on the public Web sites of these large corporations. The following sections
review related studies, describe this study, discuss the findings, and suggest directions
for future research.
SUPPLY CHAIN AND DIVERSITY RESEARCH
Two areas in the research literature support this present study: electronic,
business-to-business (B2B) supply chain linkages, and diversity programs,
including supplier diversity efforts. Electronic B2B supply chain linking is by far the most
actively researched of these two areas.
Web-based B2B commerce has many benefits, such as enabling firms to
create “end-to-end supply grids containing real time business process facilities”
(Fingar, 2000). Some industries have not aggressively sought Web-based sup-
plier links. A recent survey of large retailers found that these firms have been slow
to use the Web to link with suppliers; “only seven percent of respondents with
Web sites …use them to collaborate with trading partners”
(CSC, 2000). The
CSC study notes that Web links can improve inventory management in the areas
of shipment tracking and merchandise allocation. Conversely, other firms actively
use the Web for supplier interactions. For
example, IBM does business with 95%
of its suppliers over the Internet (Carbone, 2000). Many of IBM’s suppliers are
transitioning from EDI to Web links.
B2B procurement is assisted by Web-based catalogs that link buyers and
sellers (Baron, Shaw and Bailey, 2000). These Web interactions eliminate many
manual and paper-based procurement activities. Baron et al. note that the Web is
replacing EDI for some B2B transactions because of the need for high volumes of
transactions to justify the cost of EDI. They categorize information exchanges
between buyers and sellers, and each category focuses on ordering and payment
processes. Suppliers in their study saw benefit for participating in these electronic