Not supply and demand, the seller has skipped a step and sold the end user.
Nutrasweet:
Manufacturer/Software Vendor sells Customer who in turn demands product
from Supplier/Fast food chain.
Nutrasweet manufacturing sells Fast food customer who demands Nutrasweet
from McDonalds.
Ultra Super AS2 software company sells Wally Worlds of Goods who demands
supplier use Ultra Super AS2 software.
"Retailer has existing relationship with supplier."
You eat at McDonalds now.
"Software company approaches retailer with proposition.
(Free software/service for retailer.)
(Possibly "incentive" to decision makers at retailer.)
(Retailer must require suppliers to comply.)"
You will do anything to loose weight, Nutrasweet is offering you that
"Retailer implements new system."
You will only use Nutrasweet now
"Suppliers follow or close down."
McDonalds has to buy Nutrasweet ot miss the bus.
It may be unethical, but not fraud to create sell or create demand for your
product at the end user.
Remember to entice / to provide incentive / to create demand / to sell is
all the same.
There are certainly better examples than the Nutrasweet which I took off
the top of my head, but the same theory applies. You ever wonder why
prescription TV ads or Beef council 'Steak it's that good' commercials
appear on TV? You aren't actually buying directly from the prescription
company or beef council of america, buy you are going to ask your supplier
for it.
Regards,
-Steve
Travis Truax
To: EDI-L Mailing List
<[EMAIL PROTECTED]> cc:
Subject: RE: [EDI-L] Is EDI dead?
01/11/2005 05:10 PM
I see that as very different. You're talking about supply & demand.
I'm talking about fraud:
Retailer has existing relationship with supplier.
Software company approaches retailer with proposition.
(Free software/service for retailer.)
(Possibly "incentive" to decision makers at retailer.)
(Retailer must require suppliers to comply.)
Retailer implements new system.
Suppliers follow or close down.
If you consider the commercial bombardment of nutrasweet ads
brainwashing, the situations would be closer to the same, because
the "demand" in that instance of "supply & demand" was
heavily manipulated. I just see it as advertisement.
Travis-
-----Original Message-----
From: Stephen Lee [mailto:[EMAIL PROTECTED]
Sent: Tuesday, January 11, 2005 3:46 PM
To: EDI-L Mailing List
Subject: RE: [EDI-L] Is EDI dead?
Funny, but not unheard of.
Customers are bombarded by commercials that Nutrasweet is healthy for you
and show you pictures of how thin people are who use Nutrasweet. Who can
deny that? Customers go into their local fastfood demanding Nutrasweet.
Fastfood supplier has to go and buy nutrasweet now.
Kids Toys would be a even better example.
-Steve
Travis Truax
To: EDI-L Mailing List
<[EMAIL PROTECTED]>
cc:
Subject: RE: [EDI-L] Is EDI dead?
01/11/2005 02:44 PM
To continue with your analogy, I would say asking to hold the onions is not
the same thing,
but it would be to refuse to purchase their Big Mac and every other fast
food chain's burgers
until they loaded it with brand X's mustard, right after brand X gives you
$100 and a 5 gallon
lifetime supply of mustard. :)
Travis-
-----Original Message-----
From: Stephen Lee [mailto:[EMAIL PROTECTED]
Sent: Tuesday, January 11, 2005 12:51 PM
To: EDI-L Mailing List
Subject: RE: [EDI-L] Is EDI dead?
These customer supplier relationship issues aren't specific to EDI. When
you order your Big Mac from McDonalds and ask for no onions you are doing
the same thing to them on a much smaller scale.
I think suppliers need to keep better track of these specific customer
costs. What happens alot of times are by the time a project get's to EDI
the contract pricing is already negotiated, and the sales and IT
organizations are different departments that don't communicate these extra
costs. So it becomes a game of how much can the supplier bear before they
realize and scream to renegotiate the contract. Sometimes these costs are
fractions compared to the actual revenue being generated from a customer
contract.
Regards,
-Steve
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