**4.1 Derivation of morphologies**

Basic influencing factors on the producer-supplier-interaction are such factors, that have a major effect on when and how the main producer and his 1st-tier suppliers have to interact in the course of the inter-company order execution as well as which information have to be exchanged during their interaction.

The first basic influencing factor regarded is the type of product or service exchanged between a producer and a supplier. Complex products or services for instance typically require significantly higher efforts of coordination at earlier phases of a project than less complex products or services due to a far more distinctive exchange of specification information (Schmidt, 2008). Besides the type of product or service exchanged, it is in particular the type of business relationship between the producer and the supplier, which characterizes the producer-supplier-interaction. For instance, different levels of confidentiality between the producer and his suppliers exist and thus necessitate a very differentiated and individualized design of information flows in the context of the producersupplier-interaction (Meyer et al., 2006).

In order to derivate morphologies of typification both product- and service-related features as well as business-relationship related features and attributes have been analyzed and determined.

### **4.2 Product/service morphology**

The feature level of individualization of a product or service provided by a supplier describes if and to which extent customer- or producer-induced modifications are necessary in the course of the order execution to eventually comply with certain order-specific requirements (Besslich & Lumbe, 1994; Scherer, 1991; Schomburg, 1980). The feature level of specification characterizes how detailed the requirements and characteristics for a product or service to be exchanged are specified in the beginning of the order-specific producersupplier-interaction. The higher the level of individualization and the lower the level of specification, the higher is typically the necessary effort of coordination and thus the more intense is the interaction between the producer and the supplier in the course of the intercompany order execution (Hillebrandt, 2002; Schulte-Zurhausen, 2005). Furthermore suppliers of highly individualized and poorly specified products or services have to be involved in much earlier project phases than suppliers of less individualized and more specified products or services.

purpose, no universally valid types can usually be derived. A derived type is in fact rather linked to the particular interest of the observer and has to comply with his goals and

The characteristics of the producer-supplier-interaction are substantial, both to the design of order execution reference processes and to the design of the corresponding processes of interaction. That is because those characteristics influence the time-logical arrangement of the tasks and producer-supplier-interfaces as well as the respective way of interaction

Basic influencing factors on the producer-supplier-interaction are such factors, that have a major effect on when and how the main producer and his 1st-tier suppliers have to interact in the course of the inter-company order execution as well as which information have to be

The first basic influencing factor regarded is the type of product or service exchanged between a producer and a supplier. Complex products or services for instance typically require significantly higher efforts of coordination at earlier phases of a project than less complex products or services due to a far more distinctive exchange of specification information (Schmidt, 2008). Besides the type of product or service exchanged, it is in particular the type of business relationship between the producer and the supplier, which characterizes the producer-supplier-interaction. For instance, different levels of confidentiality between the producer and his suppliers exist and thus necessitate a very differentiated and individualized design of information flows in the context of the producer-

In order to derivate morphologies of typification both product- and service-related features as well as business-relationship related features and attributes have been analyzed and

The feature level of individualization of a product or service provided by a supplier describes if and to which extent customer- or producer-induced modifications are necessary in the course of the order execution to eventually comply with certain order-specific requirements (Besslich & Lumbe, 1994; Scherer, 1991; Schomburg, 1980). The feature level of specification characterizes how detailed the requirements and characteristics for a product or service to be exchanged are specified in the beginning of the order-specific producersupplier-interaction. The higher the level of individualization and the lower the level of specification, the higher is typically the necessary effort of coordination and thus the more intense is the interaction between the producer and the supplier in the course of the intercompany order execution (Hillebrandt, 2002; Schulte-Zurhausen, 2005). Furthermore suppliers of highly individualized and poorly specified products or services have to be involved in much earlier project phases than suppliers of less individualized and more

**4. Type-based characterization of producer-supplier interaction** 

between the producer and the suppliers at those interfaces.

problems (Förster, 1988).

**4.1 Derivation of morphologies** 

exchanged during their interaction.

supplier-interaction (Meyer et al., 2006).

**4.2 Product/service morphology** 

specified products or services.

determined.


Fig. 3. Product/service morphology

The feature complexity refers to the design-based, structural characteristics of the product or service exchanged between the producer and the supplier (Scherer, 1991; Schomburg, 1980; Wildemann, 2000). The complexity of a product or service thus affects the producersupplier-interaction in a similar way as the level of individualization and the level of specification. Moreover, complex products or services often require a rather frequent interaction of the producer and the supplier throughout the entire order execution. That is due to their typically high importance to the overall system ordered by the customer and the corresponding necessity of distinctive monitoring & controlling procedures (Rotering, 1993).

The feature changes to the specifications refers to the frequency and the initiator of the changes applied to the specifications of a product or service exchanged between the producer and a supplier. In particular frequent changes to the specifications of a product or service can, depending on the level of individualization, specification and the complexity of a product, result in considerable extra-efforts of coordination and thus in an increase of the intensity as well as the frequency of the producer-supplier-interaction. This is due to the necessity of repeating processes that have already been started or were even completed. The feature changes to the specifications therefore indicates how intense the producer-supplierinteraction is in the course of the inter-company order execution but provides little information about when this interaction is taking place.

The feature substitutability of the supplier includes if and to which extent a specific supplier can be substituted in the context of a specific project (Eberle, 2005; Scherer 1991; Schuh et al. 2006). The higher the level of individualization and the higher the complexity of a product or service, the less suppliers are typically capable of providing it (Arnold, 2004; Homburg, 1995; Schwerk, 2000). Whereas the substitution of suppliers is therefore often not possible or at least quite difficult as far as highly individualized and complex products or services are concerned, the substitution of suppliers is rather uncomplicated as far as standard products or services are concerned. The feature influence on the substitution represents the producer´s influence on the substitution of a supplier (Arnold, 2004; Eberle, 2005; Kraljic, 1988).

Configuration Logic of Standard Business

inter-company order execution.

service.

**4.4 Definition of product/service types** 

described more in detail within this paper.

services - marked in purple.

Processes for Inter-Company Order Management 653

small efforts at later phases. The exact opposite typically prevails for bilateral interactions during which planning information is only available on request. The two features thus also provide information about when the producer and a particular supplier interact during the

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

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

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

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

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

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

following chapters will also base upon these two product/service-types.

bottleneck products or services and their respective market power.
