Re: Suppliers Held Hostage To Procurement Platforms
Wow, cool to see some new faces here in the comments! I guess this is a topic that is close to many of you - I get the impression we have a lot of people who work directly with the supply chain here, and that says a lot about your dedication to your jobs. I hope some of you will stick around for all the other great content on the site, though - there's tons of great sutff on a huge range of business/IT topics on the front page every day! As for the topic at hand, well, I'm in the opposite boat - I don't work in an area that's touched at all by this issue (and never have), but maybe that will allow me to offer a bit of a different perspective.
Someone mentioned modern suppliers needing to compete with Amazon, and the importance of EDI in doing so. Now, that's certainly true, but at the same time there are some caveats to that. Does Amazon pay a per-transaction fee to a third party EDI service provider for each order it ships? I doubt it - and, if they do, I bet they get a very good rate. In fact, it's very possible that a lot of these processes are internalized at Amazon (etc.) because their scale allows them to do so, capturing even more value for them. If I'm already a little guy thousands of times smaller than Amazon, can I really afford extra fees in an area that's supposed to save me money? Ultimately, it's a complicated web that requires give and take on both sides, but I think it's fair to say that service providers are milking the cash cow a bit where it looks like they can get away with it.