E-Procurement-in-New-Dimensions

Dont expect to get the best prices just cruising the

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Unformatted text preview: these overhead costs can offset much or all of the savings you achieve by shopping the Web. Objective: Broadening the Supplier Pool • Plethora of horizontal and vertical marketplaces makes comparison shopping easier. • Don’t expect to get the best prices just cruising the Web. • Repeated switching of suppliers to chase lowest prices can be hard to manage and cause other problems that offset savings. The value of deep integration with suppliers is also highlighted by the effect of subtle changes from one supplier to another in technical specifications for raw materials and components. Though small, these changes can have an unfavorable impact on overall manufacturing productivity that may far exceed the savings generated from shopping the marketplace. The longstanding trend has been toward developing strategic relationships with a handful of trusted long-term suppliers who can work with you to drive operating improvements and future technological advantage. Frequent changes in suppliers based on the use of marketplaces or exchanges would clearly run counter to these important initiatives. Leveraging volume Achiev...
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This test prep was uploaded on 04/01/2014 for the course INDE 6370 taught by Professor Staff during the Spring '08 term at University of Houston.

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