key account Definition A key account is a customer that is of strategic importance to the supplier (McDonald and Woodburn‚ 2007) How KAM emerges Globalizationa few major players began to emergebig global customers International suppliers‘Tier 1’ suppliers Local suppliers‘Tier 2’ suppliers: suppliers who deal indirectly through the Tier 1‚ suppliers A major global customer wanted their suppliers to provide them with an individual (a key account manager) or a team (a KAM team) to look after
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strategy report represents the result of our analysis of four potential suppliers both domestic and international in an attempt of the company to outsource many key product components and subassemblies‚ including the 9000x series DVD drives. The identified suppliers include: - Elecom Technologies: a global firm with solid reputation‚ and has price as a competitive edge. Their net sale is 1.5 times more than the other three suppliers combined. - SureTech is a small firm‚ but located in the US‚ which
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computer related products and selling them online. Dell is very efficient in terms of dealing with its suppliers and keeping the inventory near to zero level which helps the company to adapt JIT method which lowers the prices to the final user. According to common assumption‚ power is high where the brand is powerful. Therefore‚ Dell is assumed to have far higher bargaining power than the suppliers. Dell has been successfully managing its competitors in terms of getting the needed supply of inventories
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report below.. Executive Summary: * There is no ABC analysis of the suppliers have been done by the company ( Refer finding # 1). The Purchasing Department has not carried out an ABC analysis for suppliers and articles. As a result purchasing activities are not focusing its activities on the right suppliers and articles. Local purchases are done with only one supplier and overseas purchases are done with just two suppliers. The lack of a focused approach could result in efforts not being spent
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felt that the automotive industry and businesses like computer manufacturers were very different. Ford’s supplier network was much more complex. A decision needs to be made on how Ford will use the current information technologies to interact with their suppliers. Issue Identification 1. Ford is not able to have a complete pull system as Ford’s Independent Dealerships and Suppliers have limited IT Capabilities. 2. Ford’s Complex Supply Chain. 3. Ford is unable to devise an accurate forecast
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“The intersection of power‚ trust and supplier network size: implications for supplier performance‚” by Bryan Ashenbaum and Regis Terpend (2012). The article examines the intersecting effects of power‚ trust and supplier network size on the five dimensions of supplier performance. The five dimensions are delivery‚ quality‚ cost‚ innovation and flexibility. In assessing the statistics‚ the article claims that coercive power shows a negative relationship with supplier quality and innovation. It also states
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Bargaining Power of Suppliers In the apparel industry‚ commodities and undifferentiated products‚ such as cotton‚ are purchased in the manufacturing of goods sold to customers. Also‚ cheap labor is abundant overseas for manufacturing needed products. Switching costs are low for this industry‚ allowing firms to easily pick and choose which suppliers they would like to do business with since suppliers offer very similar products‚ which gives suppliers in this industry low bargaining power. Price
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CEO until 1986. By the mid-1990s the company was the world’s largest specialized furniture retailer. Kamprad broke the mold of the traditional furniture maker and went outside of the Swedish furniture cartel. He built relationships with outside suppliers and forged a unique business model featuring exhibition retail displays highlighting a broad range of functional‚ affordable well-designed home furnishings that customers could purchase in flat packages to take home and assemble themselves. Kamprad
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company’s supply chain strategy. There are two groups within Ford that have two different opinions on how Ford should be using emerging information technologies and ideas from high tech industries‚ such as Dell‚ to change the way it interacts with suppliers. The first group argued that Ford should adopt Dell’s business model to improve efficiency and increase profits. This group emphasizes that Ford’s virtual integration should be the blueprint for what ford should attempt. On the other end‚ the second
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is that it is a clear and simple way of eliminating suppliers that measure poorly against suppliers that measure highly to a company. It also is a simple way to determine the major flaws of a particular supplier and how that supplier relationship is affecting the business negatively. For example‚ if it is absolutely essential to your business to have strong technical support from your suppliers than the company can easily eliminate suppliers that do not fulfill these needs. This method also has
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