1 InterNeg Teaching Notes 1/11 E procurement: Multiattribute Auctions and Negotiations Gregory E. Kersten InterNeg Research Center and J. Molson School of Business, Concordia University, Montreal 1. Introduction Procurement is the purchase of goods and services. It involves planning and formulation of the required specifications, search and selection of suppliers, agreement on specifications with one or more suppliers leading to a purchase, and warranty, repairs and other post sale activities. Buyers need to use one or more of the market exchange (trade) mechanisms in order to make a purchase. This note introduces the key concepts pertaining to procurement. 1.1 Marketplaces Markets are unique places where firms and people who have similar interests meet and interact. Sellers have similar goods to offer and they obtain information about their competitors, customers, as well as of potential suppliers of goods they may need. Buyers look for similar goods and they obtain information about other buyers and their interests. Suppliers offer goods buyers seek as well as other goods they may need. All these interactions are not solely of economic nature, markets are also social institutions. The results of market interactions include the establishment of business relationships and setting up and changing supply chains and business networks. Price negotiation (i.e., haggling or bargaining) is the primary form of buyer seller interactions used on many traditional markets. It is, however, not the only way to buy and sell; professionalization of commercial activities and the setting up of permanent stores diminished the role of the traditional haggling over price. In some situations such haggling may even be frowned upon. Although, negotiation continues to be an important way to make deals, other ways gained popularity and they may provide better results. Modern manufacturing with its standardized goods along with the appearance of small and large stores and institutions acting as a middleman between producers and buyers were instrumental to the establishment of another form of exchange, i.e., the posted price also known as catalog. Today posted price is most widely used for daily purchases (e.g., groceries) and for purchases of commodities and standard supplies (e.g., furniture and office supplies). While both posted price and negotiation remain in use, information and communication technologies (ICTs) popularized the third form of interaction, that is, auction. Acknowledgments: The publication of the InterNeg Papers and Notes has been supported by the Natural Sciences and Engineering Research Council, the Social Sciences and Humanities Research Council, and the J. Molson School of Business, Concordia University. G.E. Kersten. The paper cannot be reprinted in any form without its author s explicit consent.
2 ITN 1/ Valuations The main purpose of markets, from the viewpoint of neo classical economics, is the valuation of goods. Their supply is compared with the demand allowing for the determination of price at which the goods are sold. Participants who buy the goods value them higher or at their price. Those who sell them obtain value (money) that exceeds or is equal to the total costs they incurred. Buyers individual valuations may be higher than the market price. If these evaluations do not affect the overall demand, then the buyer achieves a surplus; he purchases a good for less than he would be willing to pay. Similarly, a seller may get a surplus if he sells goods for less than the total costs (which may include certain profit level). When the market is in equilibrium and the total amount of the buyers and sellers surplus reaches its maximum, then the market is efficient. Individual valuations are subjective; they depend on a particular situation and preferences of the participant. In theory it does not make any difference regarding price as no one would pay more than the market price irrespectively of the person s valuation of the good. Similarly, no one would sell for less than the market price even though by doing this he would obtain profit greater than some other sellers. In reality, because markets have frictions and buyers and sellers are not automatons, the individualization of valuations and their differences regarding price introduces an opportunity that some buyers and sellers may utilize. That is, one may try extracting additional value through a one to one negotiation. 1.3 Market transactions Markets provide the framework within which people can interact and engage in buying and selling. The purpose of these transactions is to increase the welfare of both buyers and sellers. In addition to buying and selling, people use markets in order to assess or value products and services. Arguably, the valuation process is as important as the actual exchange because it enable to discover information about the others valuation and compare it with own valuation. The comparison of valuations may be used in making decisions regarding production, consumption and savings. Individual valuations provide information to market participants which they can use to determine the changes of their welfare caused by market transactions. Valuations can be determined using: (1) money (leading to the price discovery); (2) similar or different goods; or (3) an abstract measure such as utility. The usefulness of money and other goods or services is that they can be easily compared and exchanged. These measures may be used as standards (i.e., every good can be valued in dollars, euro, yuan, etc.). They also aggregate all different attribute values of a good into a single comparable value of money. This is both strength and a drawback: strength because every market participant can easily compare different goods and a weakness because the value is the same for every person irrespectively of the individuals willingness and ability to buy and the differences in their taste and preferences. 2. Commerce value chain Any activity, to be performed, requires expending some resources. An exchange of goods is such an activity and the resources needed to undertake it may be quite large (e.g., shipment of flowers from Honduras to Europe by airplane, or transportation of oil by pipelines and ships). Transaction costs cover all expenses which the buyer and seller involved in a transaction incur in the process of buying and selling. They are the costs of doing business and they include time, effort, and money. For an organization to function overtime the total cost associated with transactions should be smaller than the total value the transaction brings to this organization. The activities which are required to realize a transaction are known as commerce value chain. The
3 ITN 1/11 3 value established during the commercial activity needs to be added to the product value before it reaches the market. This value is also known as market friction as it is the costs of engaging in and completing business transactions. Typical activities which buyers and sellers undertake to do business are illustrated in Figure 1. The total costs of activities included in this value chain are transaction costs. Figure 1. Buyer and seller s value chains Transaction costs often arise before the exchange is initiated. For the buyer, they include product discovery and evaluation and they may be done without the sellers knowledge and involvement. Sellers know about these activities and therefore they need to learn about buyer s requirements and also educate them about the products and their qualities. Also, locating potential trading partners, checking their reliability, comparing them, contacting and selecting one to do business requires time and effort. A transaction is initiated by the buyer who engages in the specification of terms describing price, characteristics of the product (e.g., configuration, volume and color), product delivery, upgrades, warranties and service. The interactions between the buyer and seller are successful when they agree on the terms. Transaction may not take place if the seller does not provide certain assurances and services. Because the purchase depends on them, they are also included in the commerce value chain and associated transaction costs. These additional terms require that the participants engage in post settlement activities (Figure 1). 3. Exchange mechanisms Contemporary markets are governed, both directly and indirectly, by many different rules. ). One particular set of rules directly specifies the ways the transactions can take place. This set of rules is known as exchange mechanisms. There are three main types of exchange mechanisms used in economic transactions: (1) posted price (catalogues); (2) auctions; and (3) negotiations. The basic structure of each mechanism is schematically illustrated in Figure 2. I assume that a the figure illustrates situation with three sellers and five buyers but the discussion remains the same if the roles are switched and three buyers want to purchase goods supplied by five sellers. There are three types of activities indicated by the lines: (1) the dashed line depicts a single action of activating a mechanism; (2) the dotted line depicts scanning or observation of prices; and (3) the continuous line depicts repetitive actions of the participants.
4 ITN 1/11 4 Figure 2. Three types of exchange mechanisms Figure 21 3(a) shows three sellers who post the price of the goods they want to sell. Five buyers observe the prices and make their purchasing decisions. The sellers may change price for different reasons, including the number of transactions and visits to the physical or virtual store. However, a seller cannot post more than one price for a good at any given time. If she wants to give a volume or some other discount, then she needs to post this discount as well. In an auction, shown in Figure 21 3(b), the sellers activate the mechanism and then, similarly to posted price, they remain passive. In an auction, however, it is the buyer who determines the price rather than the seller. The important difference between an auction and in posted price is price determination. The price is posted by the seller, so he determines it no individual buyer can affect its value. In auction buyers compete and decide on the price. The buyer who is willing to pay the most gets the product. Thus, catalog is a passive mechanism and auction an active mechanism. Another difference is that in catalogs and auctions one side activates the mechanism (this side is often called owner or initiator) and, following this act, this side does not participate in the process. The persons representing the other side use the activated mechanism. In contrast, in negotiations, both sides actively participate in the transaction process. Unless noted otherwise, the owner is assumed to be the seller. 4. Procurement A supply chain is an organized system of independent organizations which exchange information, products and services. The range of exchanges is from natural resources and raw materials to components, to finished products. Supply chains link value chains of individual organizations (Figure 1) forming a network through which information, goods and services flow. Organizations belonging to a supply chain engage in its management which involves planning and coordination of procurement and logistics. Procurement is the acquisition of goods and services, while logistics is the organization and management of their flow from the point of origin (seller) to the point of destination (buyers). About 70% of corporate revenue is spent on purchasing; savings of 5% translate into very significant amounts of money for companies of any size. 4.1 Auctions Sealed bid auctions Traditionally, single round sealed bid auctions have been used in procurement. Suppliers are given
5 ITN 1/11 5 requests for quotations (RFQs) and asked to submit a bid (quotation) by a given deadline. At the deadline, the bids are opened and the best bid is selected Reverse auctions Reverse auctions were introduced in procurement in mid 1990s and within a few years they gained popularity. Large corporations and government departments began using them because of the promises of cutting costs and making the procurement process more impartial and transparent than faceto face negotiations. Reverse auctions establish a competitive setting which may result in the discovery of a true market price. Field studies reported savings of between 6 and 37% on indirect materials and between 2 and 22% on direct materials. Firms reported savings of 15% to 20%; (e.g., GE ran their first reverse auction in late 1999; in 2000 they saved 16% which amounts to more $500 million). In addition to price reduction of purchased goods, other benefits include shortening of the procurement process (from days or weeks to a few hours), increased buyer reach, the creation of new markets, and information transparency and price visibility. Supplier management Figure 3. Reverse auctions in procurement process Very positive perspectives on the use of reverse auctions in procurement have been accompanied by strong criticisms. Some studies have shown that savings are greatly overstated, supplier relationships are damaged, and distrust among incumbent suppliers is created. Some organizations and business associations consider reverse auctions antithetical to business values, compromising quality. For example, Cypress Semiconductor Corp. announced in May 2009 that the company policy is not to participate in reverse auctions, and the Surety Association of Canada and the Canadian Construction Association strongly discourage their use. Some of these criticisms are unfounded, reflect lack of familiarity and limited experience, and conflicting reports. Others, however, note the limitations of reverse auctions, which are suitable for transactional buyer seller relationship focused on obtaining best price, medium to short term contract, and requiring little collaboration. They are useful in purchasing when there are several or more qualified suppliers of goods which can be clearly specified and are of low to medium complexity. The procurement process with the use of reverse auction is shown in Figure 3. The sellers bid until the deadline is reached or no seller is willing to offer lower price than the one offered in the last bid.
6 ITN 1/11 6 At that time, the auction ends and the buyer verifies the bid and works with the winner on contract preparation Multiattribute reverse auctions Reverse auctions are single attribute, sellers bid only on price. However, over 90% of purchasing managers based their decisions on both price and non price variables (e.g., durability, warranty, service, lead time, and trust). Therefore, there is a need to develop multi attribute auctions that can be used in e procurement. The first step in this direction is the design of an auction procedure. Such auctions can be experimentally studied. The most recent survey of experimental auction research does not include any multi attribute auction experiment The consideration of attributes other than price, describing the item and/or the bidders, introduces a level of complexity that is difficult to address for many real life situations. Therefore, many organizations tend to modify the pure single attribute auctions. The modifications include: Pre selection of bidders so that only bidders who are known to meet the additional criteria are included; 1. Giving incumbents an advantage because their qualifications are known; and 2. The use of disclaimers such as the lowest bid may not be awarded the contract. The results of such auction modifications are mixed because of collusion and selection of inferior offers. In some situations the process becomes an auction in name only, as is the case with an auction in which neither the winner nor any other bidder is awarded the contract. At the InterNeg Research Centre we have developed a unique multiattribute auction procedure and implemented it in the Imaras system. The procedure is based on automatically generated limit sets, these are sets which the sellers get and which they have to obey if they want to submit their bids. Sets are generated for every round of the auction. An example of sets generated for three rounds is given in Figure 4. Figure 4. Limit sets in multiattribute reverse The limits for each round are determined based on the best bid in the previous round and additional parameters set up by the buyer (e.g., the number of limit sets calculated for each round). This means that there may be more than one set of limits in each round. Three sets per each round are shown in Figure 4; they are indicated by rectangles bounded by rows; every bid in the rectangle is admissible. Best bids for the buyer are indicated by stars; best bid (b 1 ) in round 1 (R1) is used to generate Set 1.
7 ITN 1/11 7 Another set is generated using an alternative that is as good for the buyer as bid b 1. In round 2 (R2), the sellers are informed that their bids have to belong either to Set 1 or Set 2. That is, they are given the following limits: Set 1: Price 9 and Lead time 6; and Set 2: Price 10 and Lead time 5. In round 2, the sellers made four bids (b 2, b 3, b 4 and b 5 ), bid b 5 is the best and it is used to generate the first limit set for round 3. The second limit set is generated by an alternative that is as good for the buyer as b 5. Figure 5. Reverse auctions in a procurement process We implemented this procedure in Imaras using our Invite platform. 1 A bid construction and submission screen is shown in Figure 5. The limit sets are included in the table surrounded by dotted green line. The numbers in dark red represent limits; one row in the table corresponds to one limit set. In this auction, there are 3 limit set. The seller makes a bid by selecting values that meet limits of one of these sets. 4.2 Negotiations A negotiation is a significantly more flexible exchange mechanism than auctions. It allows the parties to use different strategies and tactics; they may cooperate or compete while an auction is naturally competitive. The negotiators may present arguments and counter arguments; they may add issues (attributes) to the table or remove them. An important aspect of negotiations is education and justification. The negotiator tries to educate her counterpart about her (organization she represents) needs and requirements. She also provides justification so that her counterpart may better understand the requirements and accept (which is the negotiator s expectation). Her counterpart does the same and through this exchange of information both sides learn about each other. 1 A video demonstrating the Imbins system is available at:
8 ITN 1/ Bilateral and multi bilateral negotiations Commercial negotiations are typically bilateral or multi bilateral. In bilateral negotiations we assume that neither the buyer nor seller is seeking other sellers or buyers, respectively. Such negotiation may take place after the seller has selected the best buyer or when there is an ongoing relationship between the two sides and they need to jointly determine some details regarding the trade. Multi bilateral procurement negotiations are common when the buyer seeks the best value and is in no relationship with the seller other than the commercial one. When, for example, a person wants to buy a house or a car, he often checks a number of them and engages in discussion on sale condition with owners, agents or dealers. This means that she conducts multiple bilateral negotiations; each one with a different side (see Figure 5). Figure 5. Multi bilateral negotiations In general, multi bilateral negotiations are initiated by the single person side, for example, the buyer who contacts two or more car dealers. The process may be sequential or simultaneous. In sequential negotiations the buyer begins negotiating with one seller and tries to obtain the best possible deal from this seller. Before closing this negotiation, the buyer contacts another dealer and initiates another bilateral negotiation. At any point in time the buyer may have opened two or more bilateral negotiations; he may close some of them and open new ones. The process of sequential multi bilateral negotiations is illustrated in Figure 5(a). The buyer invites sellers S 1 and S 2 at time t 0. S 1 sees another opportunity to sell her goods and terminates the process. The buyer then invites S 3. He also initiates negotiations with S 4 and S 5 at time t 2 and t 3, respectively. Sometime later he terminates the negotiation with S 3. Between t 3 and t T he could have negotiated with other sellers (indicated by dashed line). At time t T the buyer makes his decision and selects the seller. The reverse is, however, also possible, that is, the seller may accept an offer made by the buyer terminating this and all other negotiations (unless the buyer wants to purchase several the same or similar goods from different sellers). Sequential multi bilateral negotiations introduce an opportunity for the buyer to negotiate a better deal than a single bilateral one. This opportunity arises when there are many sellers who are willing to compete, but it is not costs free (frictionless). Time, communication and cognitive efforts, and possibly money requirements, are significantly greater than in a bilateral negotiation. These costs increase with every negotiation but, for the buyer, the value of the deal does not have to become greater. This creates a dilemma for the buyer (the negotiator single side) whether the costs associated with an additional negotiation are lower than the value difference this negotiation causes. The procurement process with the use of multi bilateral negotiations is shown in Figure 6. The sellers make offers and the buyer may make counteroffers or request new improved offers. The buyer may make the same offer to every seller or make different offers. This imposes significantly more cognitive and time requirements on the buyer than it was the case in bidding (Figure 3). The process ends when either the buyer accepts an offer or one seller accepts the buyer s offer.
9 ITN 1/11 9 Supplier management Request for information & order planning Suppliers evaluation & selection Procurement Request for quotation Contract setting up & execution Bilateral negotiation Offer & counter offer exchange & evaluation Sellers Imbins negotiation system Figure 6. Negotiations in procurement process Another system built using our Invite platform is Imbins. 2 This system allows for multi bilateral negotiations which share some similarities with multi attribute auctions. An offer construction and submission screen is shown in Figure 7. As we can see, in Imbins there are no limit sets; instead, of the table (see Figure 5), this space is reserved for messages that the negotiator may send to her counterpart(s). Figure 7. Negotiations in procurement process 2 A video demonstrating the Imbins system is available at: (illustrating the buyer s activities) and at (illustrating the seller s activities).
10 ITN 1/ Procurement portfolio matrix Empirical studies of supply chain management and B2B transactions result, among others, in a portfolio of supplier relationship. This portfolio, first proposed by Kraljic (1983) postulates the following four types of buyer supplier relationships: 1. Strategic relationship with few specialized suppliers is postulated when the required goods or services are either unique or critical for the production. This relationship takes place when switching to new suppliers is difficult and/or very costly; and 2. Leverage takes place when the required products are complex and very important for the buyer but there are many capable suppliers who can provide them; 3. Acquisition involves low costs standardized goods which do not have critical impact on production. These goods, however, are not readily available or there are not many suppliers who provide them in the required amounts; and 4. Noncritical goods are easily available from multiple sources. The differences in the importance of goods and services for the company, their availability, and the degree of their standardization may require the use of different exchange mechanisms. An overview of the portfolio matrix and associated mechanisms is given in Figure 8. The procurement relationships shown in Figure 8 are indicative and they do not cover all possibilities. Exchange mechanisms are suggested for each form of the relationship. In acquisition of complex goods which have low priority for the firm, the preferred mechanism is posted price. The relationship between the buyer seller should be good but not necessarily very close. If possible purchasing should be automated. Purchasing of complex and critical goods requires strategic relationship between the parties and the procurement mechanism is the negotiation. Good close relationship should be maintained and the parties need to inform each other about any changes made during the production and distribution processes. Figure 8. Portfolio matrix and exchange mechanisms Noncritical exchanges involve simple goods that have low priority for the firm and, therefore, a highly
11 ITN 1/11 11 efficient mechanism is preferable. Automation of purchasing is probably the best solution, providing that the prices are periodically reviewed. Reverse auctions may be used as long as they do not consume too many resources. This is the type of relationship where the negotiation software agents may be used. Leverage type involves simple goods which are important for the firm. Because the goods are simple, reverse auctions may be used, their high importance may, however, require negotiations or a mix of these two mechanisms (e.g., an auction followed by the negotiation with a few of the selected suppliers). Time orientation is one of the attributes of the relationships specified in the procurement portfolio matrix. It is closely associated with the buyer supplier relationship (i.e., these two attributes are not independent) and they both affect the purchasing process. Recent studies confirmed that business organizations follow these guidelines in implementing their procurement strategies. Auctions tend to be used when the relationship between the auction giver and bidders is noncritical and when goods are simple and have a low to medium priority. Negotiations are used when the relationship is critical and goods are complex and have a critical to high priority.
PROCUREMENT: A Strategic Lever for Bottom Line Improvement Headquarters 610 Old York Road Jenkintown, PA 19046 tel 877.935.ICGC fax 877.ICGC.339 www.icgcommerce.com white paper A Time for Impact With continued
85.36 Procurement (a) States. When procuring property and services under a grant, a State will follow the same policies and procedures it uses for procurements from its non-federal funds. The State will
PEOPLESOFT STRATEGIC SOURCING Oracle s PeopleSoft Strategic Sourcing enables your organization to streamline its RFx processes, conduct real-time auctions, and strategically award contracts or purchase
PeopleSoft Strategic Sourcing Oracle s PeopleSoft Strategic Sourcing enables your organization to streamline its RFx processes, conduct real-time auctions, and strategically award contracts or purchase
The law of supply and demand dictates that in a perfectly balanced market prices gravitate towards equilibrium; where supply and demand become exactly equal... The next generation of electronic marketplaces
85.36 Procurement. (a) States. When procuring property and services under a grant, a State will follow the same policies and procedures it uses for procurements from its non-federal funds. The State will
Chapter 5 B2B E-Commerce: Selling and Buying in Private E-Markets Learning Objectives 1. Describe the B2B field. 2. Describe the major types of B2B models. 3. Discuss the characteristics of the sell-side
NBA 600: Day 25 Some Successes and Failures of Electronic Trading 27 April 2004 Daniel Huttenlocher Electronic trading Today s Class Large changes in equity markets over 5 years Much less change in most
Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) can be supported more effectively and efficiently through direct buyer-seller negotiations
TRUSTED FLEXIBLE INSIGHTFUL 01 INTRODUCING GLOBAL DAIRY TRADE GLOBAL DAIRY TRADE OFFERS A DEFINITIVE PRODUCT SUITE FOR CONNECTING THE WORLD OF DAIRY TRADING. DAIRY IS A 300 BILLION DOLLAR GLOBAL INDUSTRY
ENOVIA Global Sourcing Conquer the Supply Chain with PLM and Global Sourcing Solutions Visibility Planning Collaboration Control Direct materials sourcing (DMS) is seen as not just an important technology
A framework for analyzing B2B e-commerce by Steven N. Kaplan and Luis Garicano 1 Most U.S. companies today are attempting to figure out how they should approach business-to-business (B2B) e-commerce despite
ORACLE SOURCING & SOURCING OPTIMIZATION KEY FEATURES Two Stage evaluation of RFP Support for Two Stage RFQ surrogate bids Automatic knockout of suppliers from shortlist Support for contracts with complex
FOR USE WITH PPP PROJECTS 1 SAMPLE GUIDELINES FOR PRE-QUALIFICATION AND COMPETITIVE BIDDING PROCESS 2 1. PRE-QUALIFICATION 1.1 The requirements for pre-qualifications will be reasonable and efficient and
UDC 621.395.74:658.14:681.32 Advanced B2B Procurement on the Internet VKazuhiro Hosoi (Manuscript received September 18, 2000) Electronic Commerce (EC) is one of the biggest trends on the Internet, and
1 NASH ROCKY MOUNT PUBLIC SCHOOLS PURCHASING PROCEDURES INTRODUCTION The authority to purchase goods and services and to enter into contracts is given to Boards of Education by action of the North Carolina
Introduction to Information Management IIM, NCKU E-Commerce: Digital Markets, Digital Goods Based on Chapter 10 of Laudon and Laudon (2010). Management Information Systems: Managing the Digital Firm (11th
EndCustomer Monitor 4.0 The German PV Market from an End Customer Perspective Focus: Smart Home A Survey of PV Owners and Planers EuPD Research Multi Client September 2014 Background EndCustomer Monitor
CS155b: E-Commerce Lecture 14: March 1, 2001 Introduction to B2B E-Commerce Assignments HW4 due in class March 27, 2001 Reading: How XML Enables Internet Trading Communities and Marketplaces, by R. Glushko
Privatesector P U B L I C P O L I C Y F O R T H E Note No. 138 March 1998 Competition, industry structure, and market power of the incumbent Andrej Juris The deregulation of the U.K. natural gas industry
WHITE PAPER PRESENCE, INTELLIGENCE AND CONFLICT: OPPORTUNITIES AND CHALLENGES IN DIRECT-TO-CONSUMER E-COMMERCE EXECUTIVE SUMMARY Readers of this document will learn why the advantages and opportunities
Bills for electricity and natural gas can be a very high proportion of a company and household budget. Accordingly, the way in which commodity prices are set is of material importance to most consumers.
Covisint: Help or Hindrance? By Charles Stunson Introduction Since the press release on February 25, 2000, four of the largest automotive manufacturers in the world have been successful in assisting the
Sourcing and Contracts Chapter 13 1 Outline The Role of Sourcing in a Supply Chain Supplier Scoring and Assessment Supplier Selection and Contracts Design Collaboration The Procurement Process Sourcing
emarket Services makes it easier for you to use electronic marketplaces for international business BENEFITS AND BARRIERS ON B2B E-MARKETPLACES e Business Issue By Sammy El Ghazaly emarket Services - Swedish
PURCHASING DEPARTMENTS PRIORITIES AND FOCUS FOR THEIR EPROCUREMENT STRATEGY "e-procurement tools are designed to support corporate procurement strategy. Fully automating the Procure-to-Pay process enables
MAXIMO 7 TRAINING GUIDE PURCHASING & RECEIVING FLORIDA INTERNATIONAL UNIVERSITY P 202.262.2500 3451 NE 1 st Ave M1008 Miami, FL 33137 Table of Contents I CHAPTER 1 THE PURCHASING MODULES...5 1.1 Objectives...
Electronic Commerce and Social E-Commerce Groupon s Business Model: Social and Local Problem: Competing with other business models utilizing social and local commerce in group couponing Solution? Scale:
Three Ways to Build Maximum Recovery LiquidityServices.com Table of Contents Contents Introduction 3 Construct a Strong Online Presence 4 Demolish Pricing Objections Through Excellent Buyer Experiences
Overview of Fees (as of December 2014) All fees discussed herein pertain to transactions made with Auctionata Inc in North America. All transactions made with our German location will be subject to German
Mojave Water Agency Fixed Assets and Surplus Property Policy 2009 Table of Contents 1.0 PURPOSE... 3 2.0 DEFINITION OF A FIXED ASSET... 3 3.0 GENERAL FIXED ASSETS... 4 3.1 Purchasing a General Fixed Asset...
A Best-Practice Approach to Transforming Global Supply Chains Ralph G. Kauffman, Associate Professor University of Houston-Downtown, Houston, TX 77002, 713-221-8962 firstname.lastname@example.org Thomas A. Crimi, Category
THE UNIVERSITY OF MELBOURNE MELBOURNE BUSINESS SCHOOL MANAGERIAL ECONOMICS Term 1 1999 First Mid-Term Solutions DR. VIVEK CHAUDHRI Part A: Multiple Choice Questions Answer all of the following 10 questions
1. Introduction Guidance on Framework Agreements The purpose of this document is to provide guidance to public purchasers on the operation of framework agreements as provided for under current public procurement
www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial
Chapter Five: Risk Management and Commodity Markets All business firms face risk; agricultural businesses more than most. Temperature and precipitation are largely beyond anyone s control, yet these factors
Foreign Exchange Market INTERNATIONAL FINANCE Chapter 5 Encompasses: Conversion of purchasing power across currencies Bank deposits of foreign currency Credit denominated in foreign currency Foreign trade
See Gold in B2B B2B ecommerce Playbook B2B ecommerce platforms dramatically lower costs, streamline the sales process and increase profit. Current B2B Paradigm Is this your company? 6 people p answering
LESSONS NOTE October 2003 APPLYING BEST-PRACTICE PRINCIPLES IN PROCUREMENT A REFRESHER Lessons Notes report on best and replicable or avoidable practices in capacity building and development management
4643 EOI REQUEST FOR EXPRESSIONS OF INTEREST 4643 EOI 4643 EOI - FUNCTIONAL CONSULTANT TO LEAD THE IMPLEMENTATION OF THE PURCHASE REQUISITION MODULE IN THE PEOPLESOFT 9.0 FINANCIALS AND SUPPLY CHAIN PRODUCT.
PROCURE-TO-PAY AUTOMATION SYSTEM 1 S.P.KALAIKARTHIKA, 2 A.NITHYA, 3 V.SUGANTHI, 4 M.SUJITHA 1,2,3 Department of Information Technology (IV Year), Dr.NGP Institute of Technology, Kalapatti, Coimbatore 641048,
Strategic Sourcing Increasing competitiveness and profitability with effective purchasing Reduction of purchasing costs has significant leverage effect on profit. Impact of purchasing cost reduction on
G LOBAL SCM Rethinking Recovery: Using Data and Technology to Tackle Customer Returns and Overstock BY HOWARD ROSENBERG ON JUL 7, 2015 Retailers and manufacturers liquidate more than 95 percent of customer
E-COMMERCE: DIGITAL MARKETS, DIGITAL GOODS Content What are the unique features of e-commerce, digital markets, and digital goods? What are the principal e-commerce business and revenue models? How has
A Study on the Value and Impact of B2B E-commerce: The Case of Web-based Procurement Chandrasekar Subramaniam and Michael. J. Shaw 1 Department of Business Administration, University of Illinois at Urbana-Champaign,
Chapter 12 B2B E-commerce: Supply Chain Management and Collaborative Commerce Copyright 2009 Pearson Education, Inc. Slide 12-1 Volkswagen Builds Its B2B Net Marketplace Class Discussion Why didn t Volkswagen
B2B E-COMMERCE: A PRIMER Bruno Floriani email@example.com Lapointe Rosenstein Montreal, Quebec Most of us have heard or read headlines about the explosive growth potential of the B2B
Ch 1 - Conduct Market Research for Price Analysis 1.0 - Chapter Introduction 1.1 - Reviewing The Purchase Request And Related Market Research o 1.1.1 - How Was The Estimate Made? o 1.1.2 - What Assumptions
Strategic Sourcing Report The Importance of Sourcing Process Innovation and Practical Use of B2B Tool 1. Importance of Sourcing process innovation and its value The idea of "Strategic Sourcing" was created
1 2. Theme Information Technology Procurement Lead Paper Information Technology Procurement by OAG Canada Analysing and reporting information on IT procurement o government-wide analyses and reports on
Public Procurement Position Descriptions The following position descriptions for public procurement are an excerpt of the August 2013 NCPPC study, Identifying Position Domains in Public Sector Procurement:
XV. Important additional information on forex transactions / risks associated with foreign exchange transactions (also in the context of forward exchange transactions) The following information is given
1. Which segment do ebay, Amazon.com, and LandsEnd.com belong? A) B2Bs B) B2Cs C) C2Bs D) C2Cs 2. Which segment focuses on consumers dealing with each other? A) B2B B) B2C C) C2B D) C2C 3. Which segment
PRIMARY DEALER AGREEMENT REGARDING SWEDISH GOVERNMENT BONDS 29 November 2013 [THE PRIMARY DEALER] and THE KINGDOM OF SWEDEN REPRESENTED BY RIKSGÄLDSKONTORET NOTICE: This is an unofficial translation of
Requirements Procurement under the New Requirements 1 1 Why This Session Is Needed New provisions in Uniform Guidance Changes to conflict of interest requirements in Uniform Guidance Distinctions between
Tender Dossier Vehicles, Tracking and Equipment Tender Main Facts Table Tender reference 2016_003_Vehicles and Equipment Tender launch date 15 th January 2016 Contract Manager Rebecca Vince, Head of Logistics
Chapter 9 E-Commerce: Digital Markets, Digital Goods 9.1 Copyright 2011 Pearson Education, STUDENT LEARNING OBJECTIVES What are the unique features of e-commerce, digital markets, and digital goods? How
How Cisco Enables Electronic Interactions with Sales, Manufacturing, and Service Partners Business-to-business drives productivity, growth, and an improved customer experience. Cisco IT Case Study/Business
BUSINESS-BUSINESS (B2B) E-COMMERCE STRATEGIES AND SOLUTIONS Presented by LEENA J MANWANI INTRODUCTION The Big Bucks on the Internet these days are coming from B2B (businessto-business) deals--buying and
Currency Derivatives Guide What are Futures? In finance, a futures contract (futures) is a standardised contract between two parties to buy or sell a specified asset of standardised quantity and quality
Internet Auctions and Virtual Malls Is this Booklet Right for You? If you are a small business owner looking for alternatives to creating your own e-commerce website and want to sell online, then you will
POLICY STATEMENT Q-22 DISCLOSURE DOCUMENT FOR COMMODITY FUTURES CONTRACTS, FOR OPTIONS TRADED ON A RECOGNIZED MARKET AND FOR EXCHANGE-TRADED COMMODITY FUTURES OPTIONS 1. In the case of commodity futures
Topic 9 E Commerce LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Describe the benefits and limitations of e-commerce; 2. Explain major EC mechanisms; 3. Differentiate between B2C
Alternative Price Discovery Methods Mike Williams (firstname.lastname@example.org) Why is Price Discovery Important? Investors have confidence that: The price quoted is close to the true price The price is fair,
VISA COMMERCIAL SOLUTIONS payables automation white paper Automating payment processes to deliver bottom line cost savings in a weak economy. Author: Nicholas Marchetti, Senior Business Leader Commercial
4887 EOI REQUEST FOR EXPRESSIONS OF INTEREST 4887 EOI NETWORK BACKUP/EMAIL ARCHIVING Expressions of Interest will be received at the Information Counter, Main Floor, Richmond City Hall, addressed to the
Simplified Acquisition Procedures for Federal Purchases Ronald L. Straight, Professor School of Business, Howard University 202/806-1531; email@example.com 89 th Annual International Supply Management
MUSKOKA TOURISM REQUEST FOR PROPOSAL Muskoka Brand Revitalization and Strategy Introduction Muskoka is recognized as an iconic tourism destination. For almost 150 years our brand equity has been strong,
CHAPTER 9 COST OF GOODS AND INVENTORY 1 WHAT IS REPORTED AS INVENTORY? Inventory represents goods that are either manufactured or purchased for resale in the normal course of business Inventory is classified
CONTRACT AUDIT GUIDE FRAMEWORK TOPIC 12 CONTRACT COST AND PRICE ANALYSIS Objective To determine whether the agency effectively conducts cost or price analysis to arrive at fair and reasonable prices for
Getting a Grip on Tail Spend by Ralf Mägerle, Kyle Rosenthal, Christian Meyer Sourcing and procurement organizations are under pressure like never before. Not only are they responsible for purchasing at
Revisiting Roll-Ups Value Creation through ecommerce Situation The concept of consolidating an industry by acquiring many small companies and rolling them up into a larger firm remains an intriguing path
Perfecting Retailer-Supplier Execution Journal of Trading Partner Practices January February March 2008 What is SRM and Why Does it Matter to the Retail Industry? Reprinted with permisson Journal of Trading
How to do Business with the Province of British Columbia Every year, the B.C. Government buys a wide range of goods and services from businesses of all sizes and types. Your business could be one of them.
Chapter 5 Electronic Commerce System Community Development and Training Centre Semester 2 2006 IT 245 Management Information Systems Electronic Commerce: Electronic commerce encompasses the entire online
Paul Povel and Raj Singh Bauer College of Business, Univ. of Houston Carlson School of Management, Univ. of Minnesota What Is? What is? From the Business Press Explanations Acquisition financing, pre-arranged
A Few Suggestions for the Canadian Agenda on E-Commerce Gregory E. Kersten, Department of Decision Sciences and MIS, Concordia University, Montreal firstname.lastname@example.org, http://commerce.concordia.ca/gkersten
C r e a t i n g v a l u e t h r o u g h p a r t n e r s h i p Agenda Company overview Supply Chain Finance today Operational implications SCF Summary and conclusion 2 ASYX - Company profile Profile ASYX
White Paper Supply chain segmentation: the next step in supply chain excellence Rich Becks, General Manager, E2open 2 2 4 6 7 9 Contents Executive Summary People, Processes, and Technologies: What It Really
CHAPTER FOUR Procedures & program of auditing assets Section one Procedures & program of Auditing Fixed Assets 1. Record and inspection 1-1 Examining due procedures of the properties of fixed assets. 1-2
The Price Mechanism and Resource Allocation AS Economics Presentation 2005 Markets A market is the place where buyers and sellers meet to exchange a product. Markets require: Consumers i.e. buyers Producers
PWGSC YOUR SERVICE OUR SERVICES, STANDARDS AND RESULTS 2015 2016 BUYING AND SELLING A. KEY SERVICES We provide departments and agencies with the expertise needed to acquire complex commercial goods and
Last updated July 2, 2015 FOREX RISK DISCLOSURE STATEMENT Forex trading involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Before deciding to trade
Your consent to our cookies if you continue to use this website.