B2B
B2B
0405
Problem
Some consulting organizations persuasively argue that by properly incorporating suppliers into their product-development process, firms can cut their bills for purchased parts and materials by as much as 30 percent. Explore how a buyer–seller partnership might create these cost savings.
Step-by-step solution
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Step 1/1
According to business research and records, it is quite true and practical that by properly incorporating suppliers into their product-development process, firms can cut their bills for purchased parts and materials by as much as 30 percent. This requires a best pair of buyer-seller partnership in the business arena. It is explained below in brief:
• Analyzing and identification of accurate raw goods and services helps in cut -short of purchasing bills.
• By making the vendor firms a key participant in the product design and development.
• Reducing miscellaneous and wastage costs as much as possible by taking the necessary guidelines from vendor.
• Grasping essential information about the prices of the raw products and future prices that would be.
• To engage with a few specific and limited number of vendors as far as possible in order to make bulk orders for special discounts.