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Essay / Research Paper Abstract
A 4 page paper discussing a Stanford case, "E-sourcing Strategy at Sun Microsystems." The case discusses Sun's plans to implement a dynamic bidding system for vendors, altering the company's procurement process. Bibliography lists 2 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSitEsrcSun.rtf
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Unformatted sample text from the term paper:
Sun Microsystems assessed means of implementing a dynamic bidding process for raw materials and server components, the director of procurement strategy and supplier relations understood there would be concerns internally
and among vendors. Key issues include finding the proper software; ensuring that vendors are receptive to the process changes; and assuring procurement staff that their relationships with their suppliers
still need care and personal attention. There are several recommendations for Sun, including offering awards quickly after auctions end; total transparency to participating
vendors; and following up with vendors after having used the dynamic bidding system for several months. Key Issues The leading questions that Sun
needs to address are those associated with vendor relationships (Higuera and Holloway, 2004). Certainly the company needs to find and select the proper software, but that task should not
be difficult. With alterations to suit Suns needs, even the eBay model would be sufficient, for guidance if not for specific use. There are several software providers well
versed in dynamic bidding (An Introduction to Dynamic Commerce, 2000). Sun rightly is concerned that vendors may not be receptive to the dynamic
bidding system. Part of the art of establishing prices for customers lies in accurately forecasting future need, and the dynamic bidding system can greatly shorten the time between agreement
and action. This should simplify vendors business efforts and allow them to increase profitability while yet bidding competitively for Suns business. Vendors
are concerned that Sun is heading in the direction of accepting the lowest price without other considerations (Higuera and Holloway, 2004). This is a valid concern for those companies
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