UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC

1. UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC 2. E-SCM and E-procurement, E-reverse auctions

2. Purchasing Procedures E-commerce, E-business, E-SCM and E-procurement Definition E-commerce Any forms of business transaction carried out electronically over public telephone systems. IBM defines e-business as e-commerce above! The two terms are used synonymously. E-business Concerned with streamlining and optimizingthe whole supply chain through internal applications with the aim of ensuring maximum sales growth at the lowest possible cost. E-SCM Is using the Internet to operate the transactional aspects of requisitioning, authorising orders, receiving and payment process for the required services or products. E-procurement

3. Purchasing Procedures E-business/E-commerce tools: E-catalogues Advantages • 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

4. English bid Dutch bid Sealed bid Reverse bid Web auctions may be: Auctions Purchasing Procedures Higher price offers Start at high price – lower price offers At tendering • 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 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

5. ? ? OK OK Application of e-procurement?

6. Typical reverse auction event

7. UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC 3. Customer relationship management – Supplier relationship management

8. 1 2 1 Long-term Strategy Secures Mutual Benefits Long-term Strategy 2 3 Not one Sale at a Time! Requires Focus Supplier Relationships Definition of a Relationship “A Connection or Association” Relationship Marketing Relationship Purchasing Not only long-term purchasing! Trust and understandings

9. Supplier Relationships Costs reduction-tiering level supply chain-mature industries From medium up to relative high strategic importance/reduction of transaction costs etc. Internal contracts – mergers, acquisitions Complementary goods and services/medium assets importance Strategic alliances Network sourcing Joint-ventures? Power equivalence and high level of complimentarity Single sourcing Preferred supplier Adversarial Arms length Partnership relationship Core competencies A step-ladder of external and internal contractual relationships

10. Classification of Operational Characteristics Categories: a) vendor, b) preferred supplier, c) exclusive supplier, d) partner Delivery schedule Senior management involvement Supplier development programmes Number of suppliers Type of contract Length of contract Product service type Information exchange Pricing scheme

11. Supplier Relationships Termination – Legal Considerations Financial consequences – financial conditions are valid for limited time • Changes in business directions • Product obsolescence • Supplier is unable meet service level • Short-term attitude • Economic factors (too risky) • Merges and acquisitions Confidentiality agreements Intellectual property rights Capital assets – f. e. leasing of capital equipment Security issues – security codes Employee rights Signed record of settlement