Sharing with customer and suppliers 12 coordination

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sharing with customer and suppliers 12 Coordination by Customer None By occasional one-to-one meeting or standard letters Yearly supplier conferences Kyoryoku Kai (cascading down tiers) 13 Development by Customer None Quality control instructions/audit feedback One-to-one consultancy/audit problem solving One-to-one and group activities with Kyoryoku Kai 14 Reliance on grading None Some reliance on reactive scores Heavy reliance of reactive and predictive scores Some reliance particularly on predictive scores 15 Data Interchange Little/infrequent at operational level only Limited/sporadic at operational level only Detailed and frequent at operational level/occasional at strategic level Detailed and frequent at strategic and operational levels 16 Cost Transparency None Occasional but very limited Transparent at highest tier buyer-supplier level Transparent throughout supplier network 17 Level of Pressure Low/medium Medium/high Very high Very high and transmitted to own suppliers 18 Number of Suppliers Very high and unstable High and relatively stable Low and very stable Very low and very stable 19 Asset Specificity None/very low Low/medium High Very high and high/very high with own suppliers 20 Tiering Structure None Flat pyramidal Steep pyramidal Network format Source: Hines (1994).
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Strategic Partnership within Supply Chain 30 Although the stages of this model are presented as discrete and sequential, VPT may find that some of its competitive positioning cut across two or more of the four model stages. If this dispersion is very great, VPT will want to consider its strategies in more detail, particularly in supplier area. But, most probably, it falls mainly in one stage. The outcome of this benchmarking procedure will identify the strategic positioning of VPT, as well as its strategic relationships type with suppliers, which will be utilized in identifying the coordination and development tools concerning each particular supplier, to improve the relationships from one stage to the next. A summary of these tools is presented in Table 5.5. Table 5.5: Summary of supplier coordination and development tools Stage of reached Strategic Competitive Positioning Coordination Tool Development Tool Price Competition None None Quality Competition One-to-one meetings and standard letters Quality control instructions and audit feedback Close Cooperation Yearly conferences and one-to- one meetings One-to-one consultancy & audit problem solving activities Strategic Partnerships Supplier Association One-to-one & group activities within supplier association Source: Hines (1994). In spite of developing strategic partnership program in VPT relationships with its key suppliers as its shell, the author believes that the main part of the relationships fall into the third stage of strategic competitive positioning, that is close cooperation.
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