Oracle

Double Marginalization and the Decentralized Supply Chain (White Paper Excerpt)

PI Blogger — Wed, 23 Apr 2008 14:53:46 +0100

Double marginalization is defined as the “exercise of market power at successive vertical layers in a supply chain.” Dating back to Lerner (1934) the problem that arises as a result of double marginalization is tied to an impetus to mark up the product’s price above marginal cost. According to a 2005 Caltech paper (Vertical Integration of Successive Monopolists: A Classroom Experiment) the sequence of mark-ups “leads to a higher retail price and lower combined profit for the supply chain than would arise if the firms were vertically integrated.”

Is There a Poor “Herbie” anywhere in the Oracle SCM Area?

PI Blogger — Tue, 01 Apr 2008 23:45:27 +0100

Member Question:

From the “Theory of Constraints” there is poor Herbie, the infamous bottleneck in the supply chain pipeline. For any of you who use the Oracle Supply Chain 11.5.9 (or above) platform, is there any built-in “Herbie” that you’ve noticed, or has it been custom code wrapped around vanilla, that effected you most?

New York City, U.S.

My Response:

Supply Chain and Procurement Practices Group

Technology’s Diminishing Role in an Emerging Process-Driven World”

PI Blogger — Tue, 01 Apr 2008 05:59:54 +0100

Whenever I have been invited to speak or write about the dramatic changes in procurement methodologies and practices, the significant interest by organizations that have a technology driven program already in place or have just recently implemented one still surprise me.

Unlike years past, where attention was predominantly centered on learning more about new and emerging technologies, today’s procurement professionals are seeking insights into the actual processes that drive their enterprises.

Supply Chain and Procurement Practices Group

Aberdeen Group: E-Procurement Head-to-Head: Oracle & SAP VS Ariba VS BIC

ariba — Tue, 23 Oct 2007 18:45:15 +0100

Ariba Consistently Outperforms ERP Providers in E-Procurement

When it comes to e-procurement, bigger is not necessarily better. According to the results of a new research brief from independent research firm Aberdeen Group, the flexible and focused offerings of Ariba, Inc. the leading spend management solutions provider, deliver greater value than the e-procurement offerings of large ERP providers.