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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

e-tendering: Sending requests for information and prices to suppliers

e-reverse auctioning: Using Internet technology to buy goods and services from a number of known or unknown suppliers.

e-informing: Gathering and distributing purchasing information both from and to internal and external parties using Internet technology

Check list to evaluate the applicability of tender/auctions

The firm had aggregate numbers on its trade promotions, but it couldn't break them down by individual customer, product, or shipment.

Kimberly-Clark found itself spending huge quantities of marketing dollars, uncertain which promotions were producing retailer loyalty, shelf space, and sales, and which were going to waste.

integrating that with shipment data

what the real-time impact on our sales and profit is when running promotions

we can integrate this information into our sales and planning process with our customer

salespeople used the tool in the field to design promotional packages for specific retailers, while the company's marketing staff used it to plot broader promotion plans

Profit Calculator >, which its sales department had developed to track investments in individual promotion efforts.

Rather than think purely of managing sales, they think in terms of managing the business

Brand Builder, helps the company plan and evaluate the success of individual activities--a freestanding coupon inserted into the Sunday papers, for instance--and measure the combined effect of a number of integrated activities.

The Brand Builder suite comprises three related components

It includes a state-of-the-art collaborative tool that lets sales agents, designers, vendors, and retailers plan promotions online

It puts marketing research and information learned about consumers online in real time

science of marketing

by integrating promotional-spending data with scanner and financial information, it provides a powerful analytical tool

The Customer Relationship Cycle

Peril 1: Implementing CRM Before Creating a Customer Strategy Peril 2: Rolling Out CRM Before Changing Your Organization to Match Peril 3: Assuming that More CRM Technology Is Better Peril 4: Stalking, Not Wooing, Customers

most executives mistake CRM technology for a marketing strategy. That is, they allow software vendors to drive their approach to customer management.

Installing CRM technology before creating a customer-focused organization is perhaps the most dangerous pitfall.

Managers followed through, pushing their sales representatives to adopt the new system by making their use of it a performance metric directly linked to compensation

The biggest change that eventually resulted was not in the use of the software but rather in employees' increased sensitivity to customer needs, which eventually paved the way for effective CRM implementation

They often end up trying to build relationships with the wrong customers, or trying to build relationships with the right customers the wrong way.

Internal resistance to change.

Many mistakes at first.

This was the reason for the B2B explosion; the idea that everyone you do business with could be connected together into one big happy, cooperative family

greater supply chain visibility.

The Internet is an example of a worldwide public WAN

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

Workflow

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