Loss of major accounts demand volume can su²er a

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-Loss of Major Accounts: Demand volume can su²er a sisigni±cant loss. This can include large customers and concentrated customer bases. -Loss of Supply: If the supply of key materials and services are lost, it can slow down or even stop the operations in the supply chain.
11/21/2017 Collection – MBA675-T301 Operations & Logistics in the (... 11/33 (Post is Unread) -Customer-Induced Volume Changes: The market may demand short lead times, the ±rm will in turn need a quick reaction from its suppliers. -Service and Product Mix Changes: Customers can often change the mix of items in an order and can cause a ripple e²ect throughout the supply chain. This can cause imbalances in inventories. -Late Deliveries: Late deliveries of materials or delays in essential services can force a ±rm to switch its schedule from production of one product model to another. -Under±lled Shipments: Under±lled shipments contain enough materials to allow a ±rm to operate until the next shipment. Krajewski, L.; Malhorta, M.; Ritzman, L.; Operations Management Proccess and Supply Chains. Thread: Question 7 Post: RE: Question 7 Author: Posted Date: October 23, 2017 12:37 AM Status: Published Francisco Velazquez - Salazar Scott, Good work describing traditional relationship with suppliers and explaining why it’s important to establish positive relationship with suppliers. I also agree that Walmart has the clout to dictate supply chain relationships. In this day and age, having strong supplier/buyer relationship is a must because the business market is too competitive and information technology exposes adversarial competitors. Results have shown that adversarial approach end relationships quickly and companies involved in those relationships fall behind in the competitive world. Although a bit outdated, Strategies & Business.com posted an article identifying relationship best practices that apply to manufacture or service industries. The results were obtained from interviews conducted with 43 senior executives of major manufacturing companies and 9 leading U.S. and European suppliers. The 8 relationship best practice are: (1) Securing full commitment at the upper management level, (2) create an alignment with the other company, i.e., company goals, (3) establish clarity and purpose, (4) recognize value of a good relationship, (5) streamline decision making, (6) understand the other side’s business, (7) get beyond arm’s-length relationship, and (8) codifying the relationship. This means “setting agreed-upon performance standards, identifying areas for improvement, and establishing protocols to maintain open communication and transparency.” (Smeekes & Wilk, December 2, 2008) Reference Smeekes, F., & Wilk, R., (December 2, 20108) Transforming an Adversarial Relationship , retrieved October 23, 2017 from ?

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