For instance, we have stated above that some of the
most recognized benefits of JIT purchasing are lead-time
reduction, inventory level reduction, an improvement in
quality, a decrease in inventory holding costs, and a
reduction in the size of the supplier base. It would be
surprising to assume that these benefits could be
observed in a relationship that excluded any form of
support and commitment from the buying firm. Such
benefits are likely to depend on substantial efforts from
the supplier, and there have to be guarantees that these
efforts would be as profitable to the supplier as they are
for the buying firm. However, these guarantees (such as
long-term commitment, exclusivity agreements, technical
support, information sharing, and knowledge transfer)
are not usually part of the dealing basis within a concurrency
strategy. Thus the partnership strategy offers a
framework that will facilitate the emergence of these
guarantees and put both parties in a win-win situation.
For instance, we have stated above that some of the
most recognized benefits of JIT purchasing are lead-time
reduction, inventory level reduction, an improvement in
quality, a decrease in inventory holding costs, and a
reduction in the size of the supplier base. It would be
surprising to assume that these benefits could be
observed in a relationship that excluded any form of
support and commitment from the buying firm. Such
benefits are likely to depend on substantial efforts from
the supplier, and there have to be guarantees that these
efforts would be as profitable to the supplier as they are
for the buying firm. However, these guarantees (such as
long-term commitment, exclusivity agreements, technical
support, information sharing, and knowledge transfer)
are not usually part of the dealing basis within a concurrency
strategy. Thus the partnership strategy offers a
framework that will facilitate the emergence of these
guarantees and put both parties in a win-win situation.
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