Overview of controlling and enabling practices from entry to exit of a partner on the platform
| Timeline/activity | Enabling practice | Controlling practice |
|---|---|---|
| Entry decision for a partner | No exclusivity obligations for supplying partners (multi-homing is allowed) | Platform sets conditions and procedures for entry of supplying partners |
| Attitude of “open heart, an open mind and open will” | Platform has contract composition procedures (legislation, level of detail and warranties) | |
| Fair value sharing principle | ||
| Process execution | Supplying partner manages within-category assortment, pricing and merchandising, inventories, order management, shipments and returns, website content | Platform prescribes assortment categories, standard operating procedures, communication systems, data exchange protocols and frequency of data exchange |
| Process improvement | Platform shares knowledge about online business, markets and categories | Platform monitors compliance on contractual conditions and procedures |
| Platform provides their supplying partners with actionable dashboards and various tools for improving their own performance | Platform monitors performance in order fulfillment and returns processes | |
| Upon low performance | Platform imposes action paths on low performing supplying partners | |
| Exit decision for a partner | Attitude of “open heart, open mind, open will” (i.e. partner may decide to exit for its own reasons) | Platform sets conditions and procedures for the (forced) exit of supplying partners |
| Timeline/activity | Enabling practice | Controlling practice |
|---|---|---|
| Entry decision for a partner | No exclusivity obligations for supplying partners (multi-homing is allowed) | Platform sets conditions and procedures for entry of supplying partners |
| Attitude of “open heart, an open mind and open will” | Platform has contract composition procedures (legislation, level of detail and warranties) | |
| Fair value sharing principle | ||
| Process execution | Supplying partner manages within-category assortment, pricing and merchandising, inventories, order management, shipments and returns, website content | Platform prescribes assortment categories, standard operating procedures, communication systems, data exchange protocols and frequency of data exchange |
| Process improvement | Platform shares knowledge about online business, markets and categories | Platform monitors compliance on contractual conditions and procedures |
| Platform provides their supplying partners with actionable dashboards and various tools for improving their own performance | Platform monitors performance in order fulfillment and returns processes | |
| Upon low performance | Platform imposes action paths on low performing supplying partners | |
| Exit decision for a partner | Attitude of “open heart, open mind, open will” (i.e. partner may decide to exit for its own reasons) | Platform sets conditions and procedures for the (forced) exit of supplying partners |