Saturday 7 July 2012

Contextual e-Commerce Knowledge

Contextual e-Commerce Knowledge (CCK) in the
negotiation life cycle contributes to the formation of the
fundamental knowledge framework of the current negotiation
context. It mainly includes buyer’s RFQ, supplier’s quotes,
negotiators’ profiles, and negotiation traces.


The proposed negotiation model supports multi-attribute
RFQ. Typically a buyer creates a RFQ for a procurement
request of product, be it either a goods or service. The RFQ
consists of a list of attributes describing the product. Each
attribute makes a reference to a physical characteristic or
negotiable condition or term. Supplier’s quote is created
respectively based on what he can offer and what the RFQ is
requesting. Proposals are messages bids exchanged between

two negotiating parties. For every proposal, the buyer will
refer to the original set of attributes from RFQ, update the
values of the attributes accordingly. This will repeat during
the bargaining process. An agreement is the final proposal
agreed by both parties if the negotiation succeeds at the end.


In general we use proposal or bid to denote RFQ, quote,
agreement, and contract. Not only that all types of proposals
are defined within the appropriate domains, each proposal is
subject to a particular concept. A concept in the procurement
context is the buyer or supplier’s perception of the product
specified in the proposal. For example, it is a norm for
suppliers to consider purchasing orders that could only be
fulfilled by a stringent time constraint. For orders that must
meet a deadline, we call them urgent orders otherwise normal
orders. Therefore we have two concepts urgent and normal in
this case. They have different specifications, e.g. a large
quantity is not required if the materials cannot be delivered on
time for the forthcoming round of production, and a discount
is not of a relevant attribute for negotiation in urgent orders.
The supplier can then specify the conditions under which a
specific concept could be offered. By preparing the possible
concepts, their corresponding specifications, and associated
constraints in advance, the process for choosing the best deal
could be delegated to the negotiation agents rather than
involving both the supplier and buyer in time-consuming
negotiation rounds.

Traders’ profiles are established to keep track of both buyer
and supplier’s information. In our negotiation model which is
buyer-centric, buyer’s profile is created to describe the
common procurement preferences of a specific buyer.
Supplier’s profile is created to record the supplier’s credit
which is used for assessment of a particular suppler by the
buyer. It is also used for the buyer to choose the appropriate
negotiation strategy in negotiating with the supplier.

A negotiation trace is a log of all the messages exchanged
between two negotiation partners in a negotiation process. For
successful negotiation in which an agreement is produced in
the end, the negotiation trace contains useful knowledge
describing the nature and progress of the negotiation.

No comments:

Post a Comment