GRIP. Lecture 3: E-Contacts. Prof. dr. Dirk-Jan F. Kamann. NEVI-Chair Purchasing RUG. Groningen, Rijksuniversiteit. universiteitgroningen.

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1 Groningen Research Institute of Purchasing Lecture 3: E-Contacts Prof. dr. Dirk-Jan F. Kamann NEVI-Chair Purchasing RUG Groningen, RuG

2 Goal Potential EP New roles, opportunities & threats

3 E-Contacts Electronic Data Interchange (EDI) Open Buying on Internet (OBI) E-Commerce E-Procurement E-Business

4 Methodology purchasing and supply management findings of the regional science on distance sensitivity of contacts and activities social and business networks linked back to regional science

5 Purchasing literature Regional Science Network literature Kamann Cube distance sensitivity of activities & contacts Spatial distribution of activities Kamann Triangle δ logistical flows

6 Purchasing literature Kraljic (1983): complexity market Fisher (1970): complexity product Hughes et. al (1998): seller s view Kamann Cube (1999)

7 complexity of buyers market financial use of resources many buyers 1 buyer high low tailorized leverage routine generic JVA strategic proprietary custom design bottleneck complexity of supply market many suppliers 1 supplier source: kamann, 1999 low complexity of the product high

8 What does it tell me Types of goods & services Way we relate to the suppliers specification stage negotiation stage ordering stage logistical flows collection, wharehousing, distribution, order pick, end-packaging

9 complexiteit van de kopersmarkt veel kopers source: kamann, 1999 financieel beslag op middelen 1 koper hoog laag hefboom routine complexiteit van de aanbiedersmarkt veel aanbieders 1 aanbieder complexiteit van het product laag generiek tailorized proprietary JVA hoog strategisch knelpunt

10 Regional science Goddard (1973): distance sensitivity of activities and the contacts required to perform these activities the more routinized, the less face-to- face contacts are required the less face-to-face contacts, the more substitution by telecommunication >>> E-Contacts

11 The nature of contacts Length Frequency high 2 CLASS 1 long 1 many 2 Number of participants 1 0 CLASS 2 1 Media face-to-face 2 CLASS 3 Trading 1 2 unrelated low tele -1-1 related shor two-way one-way t few short -1 specific -1 Feedback wide Range Prearrangement long 2 Class 1 = orientation contacts Class 2 = planning contacts Class 3 = programmed contacts Bron: Goddard, 1973, Fig. 11, p.28

12 complexity of the buyers market many buyers E-Contact financial use of resources 1 buyer high low generic tailorized leverage routine proprietary JVA strategic bottleneck source: kamann, 1999 complexity of the suppliers market many suppliers 1 supplier complexity of the product low high

13 New roles in the network blue products >> E-Brokers virtual organisations spot buying, leverage contracts arrange and coordinate outsourced activities for collection, packing, packaging, order-pick, distribution, ship on line, 2-bin, scanning

14 New roles in the network Co-developers: face-to-face Capacity suppliers: : large volumes with specialised generic and tailorized goods suppliers (time slot) JVA: stage 1: face-to-face >> co-design stage 2: EDI: capacity supplier > blue

15 Logistics logistics is the bonding factor of the business processes of all actors involved again: brokers, capacity (wheels), co-developers (complete logistical design and services)

16 virtual organisation digital E-contacts brokers logistics capacity suppliers co-developers in-house production source: kamann, 1999 face-to-face contacts

17 virtual organisation digital E-contacts brokers logistics capacity suppliers codevelopers in-house production face-to-face contacts

18 Network implications New actors New roles New ways of inter-relating

19 brokers co-developers capaciteitsleveranciers: tailorized producten generieke- en proprietary producten source: kamann, 1999

20 brokers tailorized producten generieke producten co-developers

21 brokers tailorized producten generieke producten co-developers

22 Impact on logistics increased E-Contacts blue goods increase in E-coordination flows emphasize on collection/dcs time hazard free transport = key locational preferences