February 22, 2011
This is due to the fact that vertically integrated supply chains are often inflexible in terms of responding to the diverse stakeholder dynamics that are reshaping the ways in which organizations buy and sell in the emerging global economy. In a 2002 article Forrester Research’s Navi Radjou linked the lack of flexibility to the inherent […]
August 31, 2009
No doubt you have noted that I have recently been spending a fair amount of my time discussing the importance of Business Intelligence (BI) to an organization in terms of driving best practice or value decision-making on a real-time, real-world basis. While it is easy to fall into the trap of dismissing BI as semantically-based […]
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, […]
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 […]
Top PI Blog Posts Countdown No. 2: Double Marginalization and the Decentralized Supply Chain
November 2, 2012
0
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 […]