Clickable Business Models eBusiness Education Acronyms Cross References
B2B Content Standards EC Technology Standards Glossary Implementation Guidelines
Implementation Options General Recommendations References Methodology/Legends
 Home | Copyright Notice and Legal Disclaimers | Navigation Help | Tour! | Downloads | Contact Us | Site Index | Search
 Pre-Order Models Index | Supporting Documentation | Downloads | FAQs |
Pre-Order Model 4 - "Meet Competition" Quote Process, Version 1.0 
Status:  Balloted and ratified by membership via Distributor Scenario 2 ratification, August 2002

Process Activities

Special Notes:                   

 


Activity Diagram (See also Narrative):

 

 


Narrative (see also Graphic):

Step Description
A. At start state A, the buyer and seller have a pre-established relationship.  A buyer is being offered lower pricing from a competitor of the supplier the buyer wishes to buy from.  

This type of quote process is typically takes place between electronic components distributors and their suppliers, but an end-customer may also request that a supplier meet its competitor's pricing.

1.

The buyer sends a Request for Quote (RFQ) requesting that a component supplier quote pricing that meets or is lower than the supplier's competitors' pricing.  If the pricing is to apply to stock the buyer already has on-hand, in addition to pricing for future purchases, the buyer needs to supply inventory information in the RFQ.

2. The component supplier processes the "Meet Comp" RFQ.   The component supplier typically does some decision support work to verify the market price and sales potential for the product, in order to assess the impact of the price reduction.
3. In many Request for Quote processes, a supplier may opt for a "no bid" by not responding at all.  EIDX recommends that a response always be sent to a request for a "Meet Comp" quote.  When the component supplier responds to the "Meet Comp" RFQ, it will either approve the request, deny the request, providing a reason for the denial, or mark it as pending.

If the component supplier approves the request, it may be only for future purchases - the pricing change may be denied for stock that the buyer already has - and it may be approved only for a certain time period and specify effective and expiration dates.

4. The buyer processes the Response to the "Meet Comp" quote.
B. At end state B, the supplier has sent a response that indicates that the request for price reduction is either accepted (approved) or rejected (denied).  The buyer may continue on to the next step in the business scenario.
C. At end state C, the supplier has sent a response that indicates that the response to the request  is "pending".  The buyer should not continue on to the next step in the business scenario.  The buyer should expect to see a follow-up response within an agreed, configurable amount of time.  The amount of time may be specified the Trading Partner Agreement.  The buyer may launch an exception notice if the supplier's follow-on response is not received within the agreed, configurable period of time.
D. Start state D indicates that a follow-on Response to "Meet Competition" quote should be generated if the the previous response indicated a "pending" status.  The supplier may invoke the response subprocess from time-to-time as result of changes made to the terms such as changing the expiration date of the pricing.

Last updated 06 January 2003