Browsing All posts tagged under »double marginalization«

Top PI Blog Posts Countdown No. 2: Double Marginalization and the Decentralized Supply Chain

November 2, 2012


Editor’s Note: As we approach my 1,000th Procurement Insights blog post (we are now at 999 posts), I have over the past week, been sharing with you the top 5 posts in terms of overall reads. Today’s submission, which ranked number 2 with 13,077 reads, was written on August 9th, 2007.  The focus of the […]

Overcoming the challenges of an ineffective RFP process: Improved collaboration through intelligence synchronization (QStrat Profile)

August 29, 2008


I have had close to 30 reader responses to my recent posts on the utilization of the RFP or e-tendering process for the acquisition of goods and services. While there have been successful demonstrations of its utilization relative to MERX (MERX: An Evolution to a Broader Market), and of course the Commonwealth of Virginia’s eVA […]

Double Marginalization and the Decentralized Supply Chain Revisited

July 16, 2008


Without a doubt, the concept of double marginalization and the resultant issues associated with understanding and addressing its impact represents one of the more complex elements of an organization’s supply chain practice. As the point of convergence of multiple stakeholder interests and the seemingly disparate (some would say contradictory) strategies that define today’s partinioned enterprises, […]

Hansen Consulting and Seminars New Credit Certificate Program

May 5, 2008


  Whenever you purchase a Hansen Consulting and Seminars Inc white paper or service, you will receive a $25 HCSI credit certificate towards your next purchase.   Accumulating knowledge through sharing knowledge!   Whenever someone you have referred purchases a Hansen Consulting and Seminars Inc white paper or service, you will receive an HCSI $25 credit certificate towards your next purchase.  […]

Measuring Buyer and Seller Performace (A PI Q and A)

March 26, 2008


Member Question: What methods are available to measure purchasing performance for both buyers and sellers? My Response: The challenges associated with quantifying (re measuring) performance extend beyond the mechanisms for capturing the data to include its timely application relative to ongoing real-world decision making. Specifically, is the current methodology capable of incorporating centrally established acquisition […]

Double Marginalization and the Decentralized Supply Chain by Jon Hansen

August 9, 2007


Double marginalization is defined as the “exercise of market power at successive vertical layers in a supply chain.”  Dating back to Lerner (1934) the problem that arises as a result of double marginalization is tied to an impetus to mark up the product’s price above marginal cost.  According to a 2005 Caltech paper (Vertical Integration […]