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Chapter 7Procurement and Outsourcing Qi Xu Professor of Donghua University Tel: 021E-mail: xuqi@ FreeMarkets Online FreeMarkets is an online market making firm that enabled industrial buyers to link up with their potential suppliers in a live electronic bidding The end result of such interaction among a network of suppliers was procurement cost savings of about 15% for the buyers The company was founded in 1995 and was on the verge of breaking even in 1998 It was expecting to receive commissions and fees of nearly $6 million for arranging procurement of $200 million worth of industrial components and parts FreeMarkets背景介绍 95年成立匹兹堡,创始人Meakem。 工业采购是一项非常巨大的业务,仅在美国每年有超过6000亿的工业品采购。 制造业在选择供应商时面临着很大的问题:许多企业的采购技术水平很低,而能帮助它们进行决策的信息也很有。要识别真正高质量的供应商,并建立起合理的市场价格体系相当困难。 FreeMarkets开发了交互式竞价系统。 The Move to B2B Commerce B2B is Huge... Highly Fragmented Most product categories are highly fragmented, with numerous suppliers each offering different level of quality, service and pricing options Buyers incur significant cost in the actual purchase process A buyer must invest internal resources to manage the process of collecting, analyzing and acting upon all the information in the market In addition to purchase price companies spend over 10% in additional procurement costs On the suppliers side, there are significant costs in using the manufacturing reps These commissions range from 4% to 7% of purchase price How Does FreeMarkets Online Create Value for its Customers? Consulting/Purchase outsourcing Distribution Intermediary Network Enabler/Software Provider Putting together specs, drawings, lot sizes, documentation and RFQs报价请求 Identifying potential savings opportunities Identifying and qualifying suppliers Educating and training buyers Conducting the Competitive Bidding Event (CBE) Providing post bid analysis and support How Does FreeMarkets Online Create Value for its Customers? Consulting/Purchase outsourcing Distribution Intermediary Traditional B2B Tradin
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