211 relationshiwithsuppliers

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211 relationshiwithsuppliers

  1. 1. Relationship with suppliers
  2. 2. Suppliers can impact your company <ul><li>Quality </li></ul><ul><ul><li>Supplier components can positively or negatively affect the quality of your product. </li></ul></ul><ul><ul><li>Higher quality increases customer satisfaction and decreases returns, which adds cash to your bottom line. </li></ul></ul><ul><li>Timeliness </li></ul><ul><ul><li>Their timely deliveries are crucial to how customers view your reliability. </li></ul></ul><ul><ul><li>A quick turnaround can become the key to minimizing your inventory, which in turn translates to less risk of inventory obsolescence and lower cash needs. </li></ul></ul><ul><li>Competitiveness </li></ul><ul><ul><li>They can give you the one-up on your competition based on their pricing, quality, reliability, technological breakthroughs and knowledge of industry trends. </li></ul></ul>
  3. 3. Suppliers can impact your company <ul><li>Innovation </li></ul><ul><ul><li>Suppliers can make major contributions to your new product development. </li></ul></ul><ul><li>Finance </li></ul><ul><ul><li>If you've proven to be a considerate, loyal and paying customer, you may be able to tap into your suppliers for additional financing once you hit growth mode or if you run into a cash crunch. </li></ul></ul><ul><ul><li>That financing may take the form of postponed debt, extended terms on new purchases, a loan, or an investment in your company. All of these improve your cash position. </li></ul></ul>
  4. 4. Be a Valued Customer <ul><li>Always pay on time </li></ul><ul><li>Provide adequate lead times </li></ul><ul><li>Personalize the relationship </li></ul><ul><li>Share information </li></ul>
  5. 5. Build relationship with foreign suppliers <ul><li>Leveraging on technology </li></ul><ul><ul><li>Internet </li></ul></ul><ul><li>Enhanced communication across organizations </li></ul><ul><ul><li>Real time information </li></ul></ul><ul><ul><li>Vendor inventory query </li></ul></ul><ul><ul><li>Share information for decision making </li></ul></ul><ul><li>Inventory control </li></ul><ul><ul><li>Ensure continuous flow - Shipment </li></ul></ul><ul><ul><li>JAZ inventory - Warehousing </li></ul></ul><ul><li>Interorganizational collaboration </li></ul><ul><ul><li>Global production facilities </li></ul></ul><ul><ul><li>Promotional activities </li></ul></ul>
  6. 6. <ul><li>Investigate the methods used by IBM and Keytronics to develop relationships with their foreign supplies. </li></ul><ul><li>Briefly explain the importance of suppliers to the company. </li></ul><ul><li>Briefly explain how to be a valued customers. </li></ul><ul><li>Identify 3 ways (E.g. Leveraging on Internet to integrate supply chain activities) to develop relationships with foreign suppliers. </li></ul><ul><li>(A common sense approach. Consider building global business relationships) </li></ul>

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