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Date Created: 12/21/15
College online payment process fee structure Each transaction is an independent deal. Costs, production schedules, and demand forecasts are not shared. Transactional relationships are arm's-length transactions where if one party "wins", the other "loses". The role of the purchasing agent was to manage (i.e., reduce) risk and transaction costs .Trust was artificially maintained by the threat of losing the business and power resided with the buyer In the late 1990s, suppliers recognized that there were advantages in partnering with their customers. Salespersons were encouraged to development relationships with their key customers. At the same time, purchasing managers recognized that partnerships and strategic alliances with a few, carefully selected suppliers was preferable to many independent transactions of college online payment with many suppliers Although price was still an important criterion used to select a supplier, purchasing managers began to realize that the lowest priced supplier may be the most costly, considering costs related to unreliable delivery, inadequate product quality, and poor communication. Reducing the number of suppliers meant that the purchasing firm had to have a higher level of trust in the supplier, especially when the supplier was the sole source of the good or service when the buyer-supplier relationship is founded on strategic initiatives of benefit to both parties, an alliance usually results. Alliances and cooperative buyer-supplier relationships are characterized by trust, collaboration, and cooperation. Partners often share a common vision communicate frequently; use electronic media and have access to shared business systems All of these actions require a high degree of trust between the buyer and the sellerClaro, In short, the non-quantifiable supplier selection criteria (such as supplier's strategic commitment to the buyer and suppliers' willingness and ability to share information) have a greater impact on buyer's business performance than quantifiable variables In an online reverse auction the supplier is selected based on its self-expressed ability to meet the requirements described in the auction documentation. The purchasing manager might not even be familiar with the supplier prior to the auction. This means that often the sole basis for selecting a supplier in an online reverse auction is price. In fact, online payment for college reverse auctions have been found to work best in situations where the requirements are defined precisely and do not require interaction between the buyer and seller except for the bid Since the two firms may not have had a previous business relationship, trust, information sharing, and/or cooperation, have not been established. The presence of a buyer-supplier relationship (partnership, strategic alliance, etc.) is not needed in order for ORA to be successful; however, researchers have found that it increases the likelihood of establishing a buyer-supplier relationship in the long term). Therefore, the non-quantifiable variables (e.g., trust, information sharing, and collaboration, cooperation) are not likely to be critical success factors in an auction. In fact, researchers have found that online reverse auctions work best in situations where the product to be purchased is a commodity and the requirements are very well defined
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