What happens when you increase a supplier’s costs? [Plus+]

The genius of Ariba’s model has been to shift the costs of e-Procurement from the buyer to the sales side, with fees that don’t need to be a lot in percentage of spend terms in order to generate very healthy revenue for Ariba. It’s easy to see the attraction of that model to most buying organisations. Asking the supplier to pay a relatively small amount for the privilege of doing business with me seems to be a very good idea – and it happens in other ways of course, such as the “marketing fees” charged by retailers to suppliers.

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