**4.4 Definition of product/service types**

Referring to the product/service morphology presented in chapter 4.2, four different product/service types can be identified. These types are in the following termed as the bottleneck-, the long-running-, the standard-outsourced- and the diverse-source product or service.

The standard-outsourced type refers to few-part products with simple structures. This type is not regarded as the most relevant type in the context of late deliveries since production times are comparably short, there's a huge supplier base offering those products and substitution is comparably simple. The diverse-sourcing product/service type covers products or services that can be provided by external suppliers as well as by the producer himself or at least that the producer is basically able to produce these products/services inhouse. Since the producer can thus directly influence the supplier-substitution by providing the product himself, the diverse-sourcing products are less critical regarding the supply risks. Therefore standard-outsourced and diverse-sourcing products or services are not described more in detail within this paper.

Concerning the criteria mentioned above the bottleneck product or service and the longrunning product or service best represent the stated problems of late deliveries in the machinery and equipment industry. Therefore these two types are presented in the following. The analysis about the information requirements in the coordination-points in the following chapters will also base upon these two product/service-types.

The bottleneck product or service, is primarily characterized by low levels of specification and high levels of individualization. This often necessitate an order-specific development or at least a substantial modification of existing product or service structures. The product/service requirements are usually set, whereas its characteristics to comply with those requirements can either fully or partially be determined by the supplier. Bottleneck products are furthermore usually very complex and consist of numerous parts. Bottleneck services typically include several, heterogeneous subservices. Those products or services are frequently subject to specification changes during the order execution, which are mainly induced by the final customer or the producer. Supplier-induced changes to the specifications are also conceivable though. This is not at least a result of the typically small number of available suppliers for bottleneck products or services and their respective market power.

At the same time, this makes it difficult or even impossible to substitute a supplier of bottleneck products or services in the course of the order execution. The main producer thus has to face considerable market-induced supply risks as far as this type of products or services is concerned. Fig. 5 shows the described characteristics of bottleneck products or services - marked in purple.

Concerning the relevance for the producer-supplier-interaction, products or services of this type are first of all characterized by the necessity of involving the corresponding suppliers

Configuration Logic of Standard Business

Fig. 6. Characteristics of "long-running" products or services

**4.5 Definition of business relationship types** 

cooperatively-autarkic types are further analyzed.

hierarchically integrated type.

Processes for Inter-Company Order Management 655

continuously checked and assessed during the project planning process. The effort of coordination between the main producer and the respective supplier is, compared to bottleneck products or services, usually smaller. This is due to the typically high levels of product specification and low levels of individualization. The exchange of information in this context thus mainly refers to scheduling and availability information. However, since long-running products or services often represent critical schedule- and production-related restrictions, intense and stringent project monitoring & controlling procedures are needed.

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

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

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

in the very beginning of a project. This is in particular due to the prevailing risks in supply and the necessity of determining the product/service specifications according to the customer´s requirements. The exchange of information in those early phases hence basically refers to specification information as well as scheduling and availability information. As far as the project monitoring and controlling is concerned, bottleneck products furthermore require stringent progress and malfunction procedures in order to reveal supplier delays as soon as possible.


Fig. 5. Characteristics of "bottleneck" products or services

Products or services counted among the long-running type, are typically standardized or order-specifically modified (cf. Fig. 6). They are however in particular characterized by considerable long procurement times. Products or services of this type are either completely or mainly specified prior to the order-specific producer-supplier-interaction. Customer- or supplier- induced changes in specifications are usually rare. In contrast to the aforementioned bottleneck type, long-running products or services cannot be distinguished according to their complexity since basically all three complexity-attributes are possible. Even for highly standardized long-running products or services, there is however a considerable market-induced supply risk due to temporary shortages in supply. Those shortages are mainly caused by unexpected, short-term increases in demand and the resulting demand-overlap, which typically leads to decisive extensions of the anyway long procurement times. Against this background, a substitution of long-running product/service suppliers is typically not possible in the course of the order execution or at least very difficult.

Due to the typically long procurement times, the corresponding suppliers already have to be involved in the early phases of a project, that is for instance during the bid preparation process. Furthermore, the availability of long-running products or services should be

in the very beginning of a project. This is in particular due to the prevailing risks in supply and the necessity of determining the product/service specifications according to the customer´s requirements. The exchange of information in those early phases hence basically refers to specification information as well as scheduling and availability information. As far as the project monitoring and controlling is concerned, bottleneck products furthermore require stringent progress and malfunction procedures in order to reveal supplier delays as

Products or services counted among the long-running type, are typically standardized or order-specifically modified (cf. Fig. 6). They are however in particular characterized by considerable long procurement times. Products or services of this type are either completely or mainly specified prior to the order-specific producer-supplier-interaction. Customer- or supplier- induced changes in specifications are usually rare. In contrast to the aforementioned bottleneck type, long-running products or services cannot be distinguished according to their complexity since basically all three complexity-attributes are possible. Even for highly standardized long-running products or services, there is however a considerable market-induced supply risk due to temporary shortages in supply. Those shortages are mainly caused by unexpected, short-term increases in demand and the resulting demand-overlap, which typically leads to decisive extensions of the anyway long procurement times. Against this background, a substitution of long-running product/service suppliers is typically not possible in the course of the order execution or at

Due to the typically long procurement times, the corresponding suppliers already have to be involved in the early phases of a project, that is for instance during the bid preparation process. Furthermore, the availability of long-running products or services should be

soon as possible.

least very difficult.

Fig. 5. Characteristics of "bottleneck" products or services

continuously checked and assessed during the project planning process. The effort of coordination between the main producer and the respective supplier is, compared to bottleneck products or services, usually smaller. This is due to the typically high levels of product specification and low levels of individualization. The exchange of information in this context thus mainly refers to scheduling and availability information. However, since long-running products or services often represent critical schedule- and production-related restrictions, intense and stringent project monitoring & controlling procedures are needed.


Fig. 6. Characteristics of "long-running" products or services
