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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
enables buyers to dynamically collaborate with their suppliers, partners and marketplaces. It enables buyers to browse multiple supplier catalogs, place orders on multiple marketplaces or directly with the suppliers, check order status and process supplier invoices electronically
view supplier catalogs, procure electronically, receive acknowledgements, view Real Time price and stock availability, and check their orders online
Reduce or eliminate order processing -- By reducing or eliminating reliance on phone-, fax-, and paper-based manual processes, you can avoid the costs associated with duplication of effort, order processing errors, expensive phone calls, and returns.
provides a comprehensive infrastructure that enables Maximo customers to dynamically collaborate with their suppliers, partners and marketplaces
e-commerce Adapter
Desktop Requisitions
Desktop Requisitions provides Maximo users with the capabilities to search for and request materials from internal storerooms, supplier online catalogs and e-commerce sites, and marketplaces.
Define and manage your maintenance processes from start to finish with Maximo Workflow, the solution that brings streamlined collaboration to your maintenance team.
Automatically initiate a workflow process on work requests, preventive maintenance tasks, and inventory reorders
Manufacturing inputs: These are raw materials and components that go
directly into the products or process
Operating inputs: These are not parts of finished goods but include
things like office supplies, spare parts, and airline tickets. These are often called
maintenance, repair and operating (MRO) goods.
Systematic sourcing: this involves negotiated contracts. These
arrangements involve long-term relationship between buyer and seller.
Spot sourcing: in this case buyer’s objective to fulfill an
immediate need at the lowest possible cost. This does not involve any long-term relation
between buyer and seller.
a) MRO hubs
b) Yield Managers
c) Exchanges
d) Catalog units
MRO (Maintenance, repair and operating
hubs): These hubs concentrate on goods with low value. The transaction cost is
relatively higher.
disintermediate or bypass existing middlemen in the channel
Catalog
some hubs would work as
distributors for suppliers while others would work for buyers in their negotiations with
sellers.
Yield managers add great value in situations where there is high degree of price
and demand volatility, and where fixed assets cannot be liquidated or acquired quickly
to
effectively manage peaks and ebbs in demand and supply by allowing them to exchange
commodities or near commodities for production
Web-based ERP (Electronic Resource Planning): Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology.
e-MRO (Maintenance, Repair and Operating): The same as web-based ERP except that the goods and services ordered are non-product related MRO supplies.
Asset Recovery is a trade term used to describe the process of reselling equipment from a business in the process of going through bankruptcy or foreclosure.