Discuss how cooperation between a company with which you are familiar and its suppliers can reduce inventory cost (500-750 words with references).
Let us take the case of an automobile manufacturing company that sources various types of auto components from numerous vendors. The close cooperation and efficient collaboration between the automobile manufacturer and its numerous vendors can result in significant savings, efficiency and accuracy in operations of the entire supply chain of the organization.
If the company maintains close cooperation and collaboration with its vendors in terms of sharing critical information about its production, inventory, etc. via an integrated supply chain management system or ERP system that provides all the information and pertaining to organization's various processes and tasks over an integrated platform and provides access to customers and vendors as well, the suppliers of the company would be better able to plan their production, supply and order fulfilment in a much more efficient manner. Suppliers can get access to real time data and ...
Discusses how cooperation between a company and its suppliers can reduce inventory cost