Review Of Lisa Arnseth : Sharing Value With Suppliers, Inside Supply Management

Costco’s competitive advantage is partnering with venders, yet it is highly safeguarded from public release. Very little is known about the process as to how Costco partners with vendors. The ability to have good relationships with vendors allows Costco to maintain their stagey by

Businesses benefit from having a good relationship with their suppliers of raw materials and components. In manufacturing, companies are adopting “Just-in-time” manufacturing. This means that businesses only produce when they have an order, and they only get materials delivered when they are needed. Businesses require reliable and efficient suppliers to be able to order their stock last-minute.

“By the end of 3Q 2015 ended November 1, 2014; the company had generated cost reductions of $965 million through its multi-year productivity program.” (Market Realist) It is always a great idea for any company to have a Lean sense of thinking and just think how much money they could have been saving over the years if they had implemented some of these principles years ago. As for enhancing relationships with their suppliers they have strategically implemented a partnership with Samsung and Microsoft by opening stores with the Best Buys stores for a more personal experience and it also gets those brands more visibility to the average consumer. It is essentially a win-win for both

Today, Walmart is a superstore empire with 11500 retail units in 28 counties and employs 2.3 million workers. To reach this success, Walmart has mastered their supply chain management strategy and system that has allowed them to cut costs and allow consumers to save money. One technique that Walmart uses is to have fewer links in the supply chain. Walmart started working directly with the manufactures to save money and be able to have more control over its supply chain. They used a method called Vendor Managed Inventory which made manufactures responsible for managing Walmart’s orders and keeping them in stock from them inside Walmart’s warehouse. [2] Walmart only sought out strategic vendor partnerships. Walmart would only buy from suppliers who had the best price and were in a position to meet demand. They then negotiated lower prices by offering to order from them long term and to make high volume purchases. Walmart then created communication and relationship networks with the suppliers which allowed

Michael Stefanic, director of cost management at Owens & Minor (O&M), a medical and surgical supplies distributor and Daniel Borunda, material systems manager at Virginia Mason (VM) Medical Center came together to try to battle healthcare costs and improve the healthcare supply chain. Virginia Mason, a private non-profit healthcare organization based out of Seattle, offered both primary and specialized care and developed the Virginia Mason Production System (VMPS). The VMPS was a modified version of the Toyota Production System that helped VM work towards its goal of being a quality leader, emphasized line-level employee teamwork, and fought for a zero defect rate. The components of VMPS included value-stream mapping

Blanchard  (2009), “successful supplier relationships require two-way information, recommendations, metrics and incentives. Riordan Manufacturing must understand the cost and value of their entire supply chain. Without a detailed understanding of all costs, from raw materials through the end product or service, and the value provided by its supplier in the process, a supplier cannot be evaluated. Therefore, there are several things Riordan Manufacturing can do to improve their relationship with it suppliers. They can incorporate appropriate service levels and metrics into agreement, share critical information as early as possible, plan for major contingencies, expect and reward honesty and finally, make relationship meetings meaningful” (10 Strategies for Managing Suppliers).

The supply chain process for Riordan is critical for its success. This process essentially entails the transformation of materials into semi-finished and finished products, the flow of material from suppliers, and the distribution of products to customers (Chase, Jacobs, & Aquilano, 2005). In today’s marketplace, companies like Riordan are competitive and seeking new and innovative ways to transform their supply chain and make it into a competitive or strategic advantage. Companies are continuously seeking supply chain services which will enhance its overall efficiency, which in turn, will drive in more revenue while gaining a competitive advantage (Chase et al., 2005).

The essence of a partnership is that it is collaboration amongst equals, with the recognition that by working

"Despite the odds, Toyota and Honda have managed to replicate in an alien Western culture the same kind of supplier webs they built in Japan. Consequently, they enjoy the best supplier relations in the U.S. automobile industry…." (page 3 of the Liker & Choi article). Briefly describe the authors' explanation for why Toyota and Honda succeeded where the "Big 3" failed in terms of effective supplier relationship management. Do you agree with Liker & Choi's assessment? Please explain why or why not. Are there any barriers to prevent Ford and GM from emulating Toyota and Honda's approach to supplier relationship management?

In a company like Voith, where more than half the value of a project is comprised of procured material versus in-house manufactured parts and labor cost, supply management and strategic sourcing have the potential to provide some of the most value-added benefits to the organization. The sourcing department within an organization has the fiscal responsibility to ensure that profit goals are not only met but exceeded. There is a direct impact on the bottom line of the project through positive or negative performance of the vendor (i.e., quality and on-time delivery) and through the negotiated price of the parts procured. Improving bottom line profit is accomplished by establishing specific sourcing strategies, tailored to each project’s requirements as defined by the customer’s needs, with the reduction of overall project cost as the focus. Voith puts a great deal of emphasis on cost

Synergistic Value – The premise that by collaborating, partners can accomplish more together then they could have

The next value I would promote within my business culture, communication, is closely related to honesty. With honesty and communication, there is great potential for my company to gain support of the surrounding community and rapidly grow. Communication allows for people to build, share, and refine ideas in order to make it the most effective. When developing ideas, a good collaboration team has a variety of different personalities within the group. The voices on this team has equal value to the overall idea, and each has a different insight into how the idea can be improved, ultimately creating a well-thought-out idea. In order to carry out this type of idea-making, there must be a sense of healthy and effective communication. This type of communication requires clarity, positive body language, active listening, and feedback. Although it is

The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry. Toyota as a name, a company, and as a brand has become synonymous with Quality.

MGT665 – Individual Assignment Main theme The paper revolves around the migration of the value within the supply chain as industries and technologies evolve. The basis of which can be traced down to the changes occurring in the patterns of consumer behaviour. But the changes in consumer patterns does not necessarily result in the value being shifted from one stakeholder to other; rather it is purely a function of the type of industry and how it has evolved over the years. Idea in Brief Argument Successful Companies do four things well: Problem Lessons

The framework takes into account a limited number of actors including, the firm, suppliers and customers. However, although this carries a weakness for resulting in a narrow view with limited number of actors and too much focus on the firm, its strength lies in its deep focus into the firm which has laid the foundation on how firms operate, over which the GCC and GNP approach is built such as comparative advantage and flow of value. There is repeated emphasis on ‘interdependent relationship’ and coordination between parties within supply chains however “the authors appear to assume that everyone knows who is a member of the supply chain. There has been little effort to identify specific supply chain members, key processes that require integration or what management must do to successfully manage the supply chain.” (Lambert, Cooper ; 2000)