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Modeling the Value Proposition of the Marketplace vs. Direct Connection

Modeling the Value Proposition of the Marketplace vs. Direct Connection. Ricki G. Ingalls, Ph.D. Loay Sehwail, Ph.D. Candidate Oklahoma State University Center for Engineering Logistics and Distribution. Inputs. Costs ( Administrative and Technical Cost) Technical Staff Average Hourly Rate

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Modeling the Value Proposition of the Marketplace vs. Direct Connection

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  1. Modeling the Value Proposition of the Marketplace vs. Direct Connection Ricki G. Ingalls, Ph.D. Loay Sehwail, Ph.D. Candidate Oklahoma State University Center for Engineering Logistics and Distribution

  2. Inputs • Costs ( Administrative and Technical Cost) • Technical Staff Average Hourly Rate • Administrative Staff Average Hourly Rate • Number of Suppliers • The number of supplier Conoco-Phillips plan to exchange documents with electronically. • Connectivity Time • Number of hours needed for the connectivity phase in the marketplace and direct connect scenarios from the buyer side. • Number of hours needed for the connectivity phase in the marketplace and direct connect scenario from the supplier side. • Maintenance Time • Number of hours needed for the maintenance phase in the marketplace and direct connect scenario from the buyer side. • Number of hours needed for the maintenance phase in the marketplace and direct connect scenario from the suppliers side. • Cost of building an in house hub to enable the direct connect to type IV and type V suppliers ( Explained later).

  3. Types of Suppliers in the Connectivity Phase

  4. Cost Analysis Phase

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