Business to business system in supply Chain extension Essay
Business to business system in supply Chain extension
In the aerospace sector, manufacturers are making strategic efforts to consolidate their supply base and forge stronger relationships with remaining suppliers (Stundza, 1999). For example, Boeing consolidated and standardized its supply contracts and plans to reduce its number of suppliers from 3,100 to 2,700 (Stundza, 2000b). Bowman (1998) notes that within the last year in the logistics industry shippers are increasingly bidding at the corporate level.
More of them are making decisions by committee, whittling down their international provider base to a bare minimum. For example, he notes that about 40 percent of the global accounts of APL Ltd. , a worldwide logistics provider, had some type of logistics council or centralized body for purchasing, strategizing, and decision making.
8 To set the stage for PSM change, innovative customers are conducting comprehensive, corporate-wide spend analyses 9 to better understand their primary sources of expenditures and to then target their PSM improvement initiatives (e.g. , quality, speed, or cost effectiveness) on those goods and services that represent their largest and most strategic expenditures (see Owens et al. , 1998, and Laseter, 1998).
10 Customers are also stratifying their supply base by effect on results and level of strategic risk and then matching the specific management approach and type of relationship formed with particular suppliers to (Moore, Baldwin, Camm, and Cook 2002, 6 – 7).
The truth of the matter is that the chains grew because they introduced a method of retail distribution for which there was a definite need and which the old wholesaler-retailer system failed to supply. To what extent the old system was inherently deficient and to what extent its shortcomings could be and have been corrected must be discussed now, not for the sake of stressing the imperfections of a competitive system but in order to contrast certain features of the chain-store system.
The ideal distribution system would bridge the gap between production and consumption with maximum efficiency at minimum cost. Without any question, the outstanding inherent defect of the old wholesaler-retailer system lay in the fact that, under it, the wholesale function and the retail function are performed by separate, independent factors, whereas, under the chain-store system, the two functions are, to a major extent, combined.
In no sense does the chain-store system eliminate the wholesale function: it still has to be performed, but, whereas under the old system the wholesaler exercised no control over his retail outlets nor did the retailer have any control over his sources of supply, under the chain-store system both functions are performed by the same organization and the control is unified. That this basic difference between the two systems has been partly nullified by the development of voluntary chains of various kinds is true.
But the fact remains that such organizations did not come prominently into the picture until the chains had established themselves on a firm basis. When the chains were making their greatest strides, the old wholesaler-retailer set-up provided their principal competition. Reduced to its simplest terms, the main result of the essential difference between the two systems lies in the fact that under the old plan it is necessary for the wholesaler to sell to the retailer before the merchandise can find its way into consumption.
Under the chain-store system, this intervening selling process, with all its disadvantages, is obviated. (Lebhar 1963, 87- 88) “In 1981, standards for shipping containers were adopted; these facilitated the extension of the UPC into the emerging supply chain processes then appearing in both manufacturing and retailing industries. One of the reasons that the UPC had to spread grew out of the fact that not all goods sold in grocery stores were food; they included health and beauty aids, household cleaners, and so forth, which came from other industries.
To take full advantage of the technology, the Grocery Industry wanted others to adopt the symbol as well. During the 1980s and 1990s, that was what happened. ” (Cortada 2004, 299) a. Keywords ? GDP = the growth development project is one of the most important factors in determining the standing of the country in terms of their economic inflation. ? e-buisness = is one of the most popular business internet market the products here are quite fast in the presentation to the client or so called the customer. ? Probability of UK GDP = this is something to do with the computation of the GDP of UK.
This will reveal the trends of the UK if the economic inflation will fall or ascent. ? Linear regression= is the model that will suit in some computation for economic studies. This will also lead the person to identify the trends of the business to the market place. b. Basic Definitions and Terms The following terms were formulated for more understanding: ? Business to business (B2B) = It refers to the business situation and ? Inflation = This means that ….. ? Information technology = This refers to ….. c. Primary Sources d. Map out Important Areas e. Originality f. Review Conclusion.