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Supply Chain Management New Perspectives Part 6

Tham khảo tài liệu 'supply chain management new perspectives part 6', kỹ thuật - công nghệ, cơ khí - chế tạo máy phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 188 Supply Chain Management - New Perspectives Kevin Lane 2006 . In the past retailers have used a large number of suppliers and they were competing against each other for individual order. The current trend is to reduce the number of suppliers and to develop long-term relationships with a small number of them. Each supplier has different capabilities and retailer select them based on a supplier selection software package. They follow some of assessment criteria in four main areas together with the kind indicators that would determine the likelihood of a supplier meeting these criteria Varley 2003 such as product range and quality with the quality and variety of products available where the retailer assesses the supplier s production specialisation and flexibility design capability technical capability etc. prices of products and discounts available for large quantities and for rapid payment where the retailer assesses the supplier s financial stability willingness to negotiate scale economies etc. delivery in accordance with the retailer s specification in terms of timing quantities and product variety service by which a supplier is adding value to the retailer where the retailer assess the supplier s speed of new product introduction its handling of queries and complaints etc. Introducing a supplier rating system for measuring mentioned criteria a retailer has the opportunity to rationale its supply base. Furthermore a retailer facilitates communication and develops closer relationships with suppliers. They tend to retain their autonomy yet move the business together by forming supply partnership . Table 1 summarizes the transactional vs the partnership approach characteristics in retail supply. Transactional approach Partnerships approach short term or one-off many suppliers and buyers disloyalty and lack of commitment low switching costs little or no investment made in relationships loose or no procedures exchange centred on single person in firm changes in .