Group items tagged

Manufacturing inputs are the raw materials and components that go directly into a product or a process.

Operating inputs, by contrast, are not parts of finished products. Often called maintenance, repair, and operating (MRO) goods, they include things like office supplies, spare parts, airline tickets, and services

tend not to be industry specific;

Systematic sourcing involves negotiated contracts with qualified suppliers.

the contracts tend to be long term

In spot sourcing, the buyer's goal is to fulfill an immediate need at the lowest possible cost

MRO hubs are horizontal markets that enable systematic sourcing of operating inputs. Yield managers are horizontal markets that enable spot sourcing of operating inputs. Exchanges are vertical markets that enable spot sourcing of manufacturing inputs. Catalog hubs are vertical markets that enable systematic sourcing of manufacturing inputs.

Yield managers create spot markets for common operating resources

This type of e-hub adds the most value in situations with a high degree of price and demand volatility, such as the electricity and utilities markets, or with huge fixed-cost assets that cannot be liquidated or acquired quickly, such as manpower and manufacturing capacity.

The exchange maintains relationships with buyers and sellers, making it easy for them to conduct business without negotiating contracts or otherwise hashing out the terms of relationships

Like MRO hubs, catalog hubs bring together many suppliers at one easy-to-use Web site. The only difference is that catalog hubs are industry-specific

The B2B Matrix What businesses buy operating inputs manufacturing inputs How businesses buy MRO Hubs: Catalog Hubs: Systematic sourcing Ariba Chemdex W.W. Grainger SciQuest.com MRO.com PlasticsNet.com BizBuyer.com Yield Managers: Exchanges: Spot sourcing Employease e-Steel Adauction.com Paperexchange.com CapacityWeb.com Altra Energy IMX Exchange