Groningen Research Institute of Purchasing Lecture 3: E-Contacts Prof. dr. Dirk-Jan F. Kamann NEVI-Chair Purchasing RUG Groningen, RuG
Goal Potential EP New roles, opportunities & threats
E-Contacts Electronic Data Interchange (EDI) Open Buying on Internet (OBI) E-Commerce E-Procurement E-Business E-mail
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
Purchasing literature Regional Science Network literature Kamann Cube distance sensitivity of activities & contacts Spatial distribution of activities Kamann Triangle δ logistical flows
Purchasing literature Kraljic (1983): complexity market Fisher (1970): complexity product Hughes et. al (1998): seller s view Kamann Cube (1999)
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
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
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
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
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 0 1 0 0-1 low tele -1-1 related shor two-way one-way t -1-1 0 1 2 few short -1 specific -1 Feedback -1 0 0 0 1 2 1 wide Range Prearrangement long 2 Class 1 = orientation contacts Class 2 = planning contacts Class 3 = programmed contacts Bron: Goddard, 1973, Fig. 11, p.28
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
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
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
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)
virtual organisation digital E-contacts brokers logistics capacity suppliers co-developers in-house production source: kamann, 1999 face-to-face contacts
virtual organisation digital E-contacts brokers logistics capacity suppliers codevelopers in-house production face-to-face contacts
Network implications New actors New roles New ways of inter-relating
brokers co-developers capaciteitsleveranciers: tailorized producten generieke- en proprietary producten source: kamann, 1999
brokers tailorized producten generieke producten co-developers
brokers tailorized producten generieke producten co-developers
Impact on logistics increased E-Contacts blue goods increase in E-coordination flows emphasize on collection/dcs time hazard free transport = key locational preferences