The Role of Supplier Quality in e-Procurement Negotiation
Purpose: The purpose of this study is to examine the significance and the role of supplier rating as a formalised supplier quality measure to achieve better- negotiated prices and to identify price premium resulting from improved rating. Methodology/Approach: Data from real B2B environment of elec...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Technical University of Kosice
2020-04-01
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| Series: | Kvalita Inovácia Prosperita |
| Subjects: | |
| Online Access: | https://www.qip-journal.eu/index.php/QIP/article/view/1388 |
| Summary: | Purpose: The purpose of this study is to examine the significance and the role of supplier rating as a formalised supplier quality measure to achieve better- negotiated prices and to identify price premium resulting from improved rating.
Methodology/Approach: Data from real B2B environment of electronic reverse auction SW solution ProeBiz were obtained and processed. Data from the reverse rating approach were used where the default rating value is 1 and improvements of rating lead to decreasing the rating value. Except standard descriptive statistics, non-parametric correlation and Kruskal-Wallis tests, the knowledge discovery techniques by decision trees CHAID algorithm were used.
Findings: From our empirical research results, there is the evidence of a significant positive relation of supplier quality or rating improvements on a negotiated price for suppliers. Improving rating from the default value (1.00) to (0.98-0.95) can lead to better- negotiated prices for suppliers in English auction expressed as price premium in the value of 4%.
Research Limitation/implication: Research has several limitations, esp. in the size of the sample and sectorial view as the research is based on data from construction, electro-mechanics and logistics sector.
Originality/Value of paper: The paper is original and not published in other publications. |
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| ISSN: | 1335-1745 1338-984X |