Case summary:
Company RM is one of the 10 largest power boat manufacturers. It spends most of its resources on purchases. The company believes that both the supplier and the firm will benefit only when the supplier understands the needs of end users.
Company RM has taken initiatives to cut down cost and raise standards on quality and innovations. First, the company has worked on the partnership with the suppliers and cut down its cost without compromising on quality. The suppliers meet with the designers of the firm to discuss the materials to be incorporated in the new product.
Second, the company has joined ABBA, a purchasing group to work with suppliers for reducing cost. Third, the company has tied up with a local supplier to directly provide to the assembly line to implement just-in-time process.
Finally, Company R works with an agency to outsource the recruiting of employees, and there the company incorporates innovative approaches in all of its processes.
To determine: The importance of supply chain to company RM.
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