**4.5 Definition of business relationship types**

Four ideal business-relationship types can be distinguished. These are the market-autarkic type, the cooperatively-autarkic type, the cooperatively integrated type and the hierarchically integrated type.

Project-specific co-operations occur in the market-autarkic as well as in the cooperativelyautarkic type whereas in the cooperatively-integrated type the supplier is economically highly dependent on the producer and in the hierarchically-integrated type the producer and the supplier have dependent power-structures and oftentimes integrated information infrastructure. Hence, in the context of this paper focusing on the improvement of deliveryand planning reliability in non-hierarchical networks of the machinery and equipment industry, characterized by project-related cooperations, only the market-autarkic and the cooperatively-autarkic types are further analyzed.

The market-autarkic business relationship type is primarily characterized by a frame contract - free collaboration between the main producer and its supplier and shows a low intensity of binding (cf. Fig. 7). The supplier in market-autarkic business relationships is both legally and economically independent from the main producer. Their collaboration is

Configuration Logic of Standard Business

context of cooperatively-autarkic relationships.

Fig. 8. Characteristics of "cooperatively-autarkic" business relationships

framework agreement. such as quantities and quantity-related prices.

Model for Production Planning and Control (PPC) (Schuh, 2006).

furthermore be determined.

Compared to the market-autarkic type of business relationships, the effort of coordination is smaller during the order execution, due to the additional specifications stipulated within the

In the course of the following chapters, the reference processes for the inter-company order execution of producers in non-hierarchical networks of the machinery and equipment industry are worked out. For this purpose, the order-execution tasks will be described in detail and put in their time-logical order within the corresponding order-execution process. In addition, the points of interaction, that is the informational inter-company interfaces, between the producer and the suppliers will be pointed out. There are points of interaction between the customer and the producer as well and these are also shown in the figures. As these points of interaction are not of primary interest in the context of the paper, they are only mentioned for the sake of completeness but are not further explained. With regard to chapter 2, the types of information exchanged at the producer-supplier interfaces will

Figure 9 shows a detailed overview of the process activities within the general orderhandling process in the machinery and equipment industry deviated from the Aachener

**5. Order-execution reference processes and inter-company interfaces** 

Processes for Inter-Company Order Management 657

supplier-interaction (partially set sourcing conditions). Further information, e.g. information concerning delivery times etc., are usually exchanged during the order execution via reciprocal, bilateral processes of interaction. This information usually has to be specifically requested by the producer. The communication media applied in this context is rather conventional (e.g. telephone, fax, email or mail). A partially standardized exchange of information, e.g. via internet-based sourcing platforms, may however also be found in the

furthermore project-specifically institutionalized. Investments in a common information infrastructure are therefore untypical and the applied communication media rather conventional (e.g. telephone, fax, email or mail). Due to the project-specific collaboration, the sourcing conditions - such as prices, quantities etc. - are usually not set prior to the actual producer-supplier-interaction in the course of the inter-company order execution. Only the product characteristics as well as the requirements for the supplier are specified in the first place. The exchange of information is usually bilateral and initiated by requests from either side.


Fig. 7. Characteristics of "market-autarkic" business relationships

Concerning the relevance for the producer-supplier-interaction, market-autarkic business relationships are in particular characterized by the fact, that the main producer has got almost no options of influencing the supplier´s behavior. This matter of fact results from the project-specific cooperation and thus the absence of further legal agreements or even capital participations. Due to the rudimentary specification of the sourcing conditions, the producer furthermore needs to gather a lot of additional information during the gross and detail planning phase via time-consuming bilateral question-answer-interaction. Among those information are for instance additional specification information (e.g. prices) as well as scheduling and availability information (e.g. delivery times and dates) and monitoring and control information during later project phases. The supplier´s input therefore considerably effects the plans and schedules created by the producer and often represents a restriction for the further planning.

The cooperatively-autarkic relationship type is characterized by a cooperative but at the same time market-oriented collaboration (cf. Fig. 8). This means, that similarly to the market-autarkic relationship type, the supplier is legally and economically independent from the main producer. However, their cooperation is based on a legal framework agreement, which e.g. contains further sourcing conditions. In addition to the product characteristics and the requirements for the supplier, quantities and the respective prices of the product to be exchanged, are thus typically specified prior to the actual producer-

furthermore project-specifically institutionalized. Investments in a common information infrastructure are therefore untypical and the applied communication media rather conventional (e.g. telephone, fax, email or mail). Due to the project-specific collaboration, the sourcing conditions - such as prices, quantities etc. - are usually not set prior to the actual producer-supplier-interaction in the course of the inter-company order execution. Only the product characteristics as well as the requirements for the supplier are specified in the first place. The exchange of information is usually bilateral and initiated by requests

Fig. 7. Characteristics of "market-autarkic" business relationships

Concerning the relevance for the producer-supplier-interaction, market-autarkic business relationships are in particular characterized by the fact, that the main producer has got almost no options of influencing the supplier´s behavior. This matter of fact results from the project-specific cooperation and thus the absence of further legal agreements or even capital participations. Due to the rudimentary specification of the sourcing conditions, the producer furthermore needs to gather a lot of additional information during the gross and detail planning phase via time-consuming bilateral question-answer-interaction. Among those information are for instance additional specification information (e.g. prices) as well as scheduling and availability information (e.g. delivery times and dates) and monitoring and control information during later project phases. The supplier´s input therefore considerably effects the plans and schedules created by the producer and often represents a restriction for

The cooperatively-autarkic relationship type is characterized by a cooperative but at the same time market-oriented collaboration (cf. Fig. 8). This means, that similarly to the market-autarkic relationship type, the supplier is legally and economically independent from the main producer. However, their cooperation is based on a legal framework agreement, which e.g. contains further sourcing conditions. In addition to the product characteristics and the requirements for the supplier, quantities and the respective prices of the product to be exchanged, are thus typically specified prior to the actual producer-

from either side.

the further planning.

supplier-interaction (partially set sourcing conditions). Further information, e.g. information concerning delivery times etc., are usually exchanged during the order execution via reciprocal, bilateral processes of interaction. This information usually has to be specifically requested by the producer. The communication media applied in this context is rather conventional (e.g. telephone, fax, email or mail). A partially standardized exchange of information, e.g. via internet-based sourcing platforms, may however also be found in the context of cooperatively-autarkic relationships.


Fig. 8. Characteristics of "cooperatively-autarkic" business relationships

Compared to the market-autarkic type of business relationships, the effort of coordination is smaller during the order execution, due to the additional specifications stipulated within the framework agreement. such as quantities and quantity-related prices.
