Supplier Performance Database Management
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Some companies maintain supplier performance in the company's supply base for all the suppliers to compare their performance to other suppliers. Discuss the advantages and disadvantages of this strategy for both buyers and suppliers.
Course reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and supply chain management (6th ed) Boston, MA: Cengage Learning
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Solution Summary
The solution provides guidance on identifying the major advantages and disadvantages to supplier and buyer in maintaining supplier performance database.
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Supply base
Companies who maintain the data on supplier performance can have a greater advantage in terms of managing relations with the suppliers and gaining a stronger bargaining power. The areas of improvements can be identified by both buyers and suppliers to increase supplier performance that can help them not only in getting good bargaining positions but also in providing good quality products to the final consumer creating value of money for the buyers and evolution of a good brand name. However, there are areas of disadvantages also as maintain database entails costs and may also lead to conflicts. Therefore, the advantages and disadvantages of this strategy are as follows:
Advantages to Suppliers
1. The supplier gets insights into the areas of improvement as a result of this database management strategy (Monckza et.al., 2016).
2. This database leads to a better customer relationship management of supplier (Monckza et.al., 2016).
3. The risks of losing customers is reduced by getting access to supply base (Monckza et.al., 2016).
4. The supplier is able to improve performance and the improvements can be tracked and measured leading to a ...
Education
- BCom, M.D.S University, Ajmer
- MBA, M.D.S University, Ajmer
- PhD, Suresh Gyan Vihar University, Jaipur
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