Benefits And Limitations Of Strategy Buyers And Suppliers

SUPPLIER MANAGEMENT
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Supplier Management
Companies can decide to keep the supply performance in their supply base for every supplier to compare their performance to that of other suppliers. This is practice common and it is enjoying success in the performance measurement programs across the globe. This paper discusses the benefits and limitations of the strategy to both the buyers and the suppliers.
The companies (buyers) can track a broader portion of the supply base. Using this chance, they can avert product quality problems, service delays, and cost overruns. This technique also helps to standardize the supplier measurement procedures. Additionally, the buyers collaborate with suppliers on performance metrics, reporting, and improvements (Domingues, Reis & Macário, 2015). Lastly, the buyers can automate key supplier performance measurement activities and make the process more productive. However, this technique may cost the buyers as it gives away too much information that should be kept private and confidential. It could ...