UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
2. E-SCM and E-procurement, E-reverse auctions
Any forms of business transaction carried outelectronically over public telephone systems.
IBM defines e-business as e-commerce above!The two terms are used synonymously.
Concerned with streamlining and optimizing the wholesupply chain through internal applications with the aim of
ensuring maximum sales growth at the lowest possible cost.
Is using the Internet to operate the transactionalaspects of requisitioning, authorising orders, receiving and
payment process for the required services or products.
Purchasing ProceduresE-commerce, E-business, E-SCM and E-procurement
DefinitionE-commerce
E-business
E-SCM
E-procurement
Purchasing ProceduresE-business/E-commerce tools: E-catalogues
Facilitates real-time effective communication between buyers and sellers
Enables closer relationships
Enables suppliers to respond quickly
Virtual elimination of time lag in purchasing process
Maverick purchasing is reduced
Advantages
Purchasing ProceduresAuctions
Web auctions may be:English bidDutch bidSealed bidReverse bid
Advantages• Better savings than through negotiation• Reduction in acquisition lead time• Access to more suppliers• Global supply place• Enhancement of market knowledge• More efficient RFQs and problems• Anonymity
Disadvantage• Based on win-lose• Adverse shift in relationships• Long-term adverse effects for the buyer & seller
Higher price offers
Start at high price – lower price offers
At tendering
Request: 100 items per 25 €: offers A 100 items/25 €, B 50 items/20 €, C 50 items/15 €.......final result of auction: A failed, B 50 items/20 €, C 50 items/15 € ....next versions
Application of e-procurement?
OK
OK
? ?
Typical reverse auction event
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
3. Customer relationship management – Supplier relationship management
Supplier Relationships
Definition of a Relationship
Relationship Marketing
Long-termStrategy
1
Not oneSale ata Time!
2
“A Connection or Association”
Relationship Purchasing
Long-termStrategy
1SecuresMutual
Benefits
2
RequiresFocus
3Not only long-term purchasing! Trust and
understandings
Core competencies
Partnershiprelationship
Arms length
AdversarialPreferred supplier
Single sourcing
Network sourcing
Strategic alliances
Internal contracts – mergers,
acquisitions
A step-ladder of external and internal contractual relationships
Supplier Relationships
Complementary goods and services/medium assets importance
From medium up to relative high strategic importance/ reduction of transaction costs etc.
Costs reduction-tiering level supply chain-mature industries
Joint-ventures?Power equivalence and high level of complimentarity
Delivery schedule
Senior management involvement
Supplier developmentprogrammes
Number of suppliers
Classification of Operational Characteristics
Type of contract
Length of contract
Product service type
Information exchange
Pricing scheme
Categories: a) vendor, b) preferred supplier, c) exclusive supplier, d) partner
Termination – Legal Considerations
Financial consequences – financial conditions are valid for limited time
Confidentiality agreements
Intellectual property rights
Capital assets – f. e. leasing of capital equipment
Security issues – security codes
Signed record of settlement
Employee rights
Supplier Relationships
•Changes in business directions•Product obsolescence•Supplier is unable meet service level•Short-term attitude•Economic factors (too risky)•Merges and acquisitions