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...

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Main Authors: Radoslav Delina, Mária Michňová, Peter Húska, Ján Spišák
Format: Article
Language:English
Published: Technical University of Kosice 2020-04-01
Series:Kvalita Inovácia Prosperita
Subjects:
Online Access:https://www.qip-journal.eu/index.php/QIP/article/view/1388
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author Radoslav Delina
Mária Michňová
Peter Húska
Ján Spišák
author_facet Radoslav Delina
Mária Michňová
Peter Húska
Ján Spišák
author_sort Radoslav Delina
collection DOAJ
description 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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spelling doaj.art-a5f110a5a9ad4079a2e7d6ed7722141c2023-08-10T13:16:41ZengTechnical University of KosiceKvalita Inovácia Prosperita1335-17451338-984X2020-04-0124110.12776/qip.v24i1.1388The Role of Supplier Quality in e-Procurement NegotiationRadoslav Delina0Mária Michňová1Peter Húska2Ján Spišák3Technical University of Kosice Faculty of EconomicsUniversity of Economics in Bratislava Faculty of Business EconomyUniversity of Economics in Bratislava Faculty of Business EconomyTechnical University of Kosice Faculty of Mining, Ecology, Process Control and Geotechnologies 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.https://www.qip-journal.eu/index.php/QIP/article/view/1388ratingsupplier qualityelectronic reverse auctionprice premiume-procurement
spellingShingle Radoslav Delina
Mária Michňová
Peter Húska
Ján Spišák
The Role of Supplier Quality in e-Procurement Negotiation
Kvalita Inovácia Prosperita
rating
supplier quality
electronic reverse auction
price premium
e-procurement
title The Role of Supplier Quality in e-Procurement Negotiation
title_full The Role of Supplier Quality in e-Procurement Negotiation
title_fullStr The Role of Supplier Quality in e-Procurement Negotiation
title_full_unstemmed The Role of Supplier Quality in e-Procurement Negotiation
title_short The Role of Supplier Quality in e-Procurement Negotiation
title_sort role of supplier quality in e procurement negotiation
topic rating
supplier quality
electronic reverse auction
price premium
e-procurement
url https://www.qip-journal.eu/index.php/QIP/article/view/1388
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