Discuss the Nature of Social and Labor Issues That Domestic Manufacturers Will Likely Face With Their International Suppliers
"For example, Wal-Mart identifies common products used throughout the world and "determines whether there is an opportunity to improve quality, reduce costs and, by working with a best-in-class supplier, achieve better replenishment and new item introductions." For instance, Wal-Mart has worked with its copy-paper sales supplier to offer new products and more value to customers throughout the world. y actively working with these suppliers, Wal-Mart has realized sales increases of 46% in England, 94% in Germany, 38% in Canada, and 25% in U.S. discount stores, and a 13% increase at Sam's Club stores".
The relationship with the suppliers is one the main issues which has to be addressed before outsourcing the core activities of a company. If a company plans to outsource its core activity, then it is better to develop and maintain a partnership relationship with its external suppliers. In order to achieve and maximise a competitive advantage, the company can develop and maintain a better buyer-supplier relationship. Even though the companies try to develop and maintain relationship with their key suppliers, this will exist only till the suppliers maintain its leadership in the advance technology and quality. The future threat towards the customers should also be considered, as there are chances that the suppliers acquire the knowledge and skills from the customer organisation and compete against them in future. The company can follow invest to perform internally strategy, if there are no suppliers available and if the company has suppliers available, then it can develop relationship with the suppliers and focus on the resources which are of high value added.
With an effective procurement strategy, a company is bound to benefit. The role of procurement department extends from procuring for raw materials, machineries, office suppliers to developing an effective procurement process (Karp, 2005). This paper analyzes the benefits that effective Procurement activities can have on an organisation.
The world nowadays is too small to be comfortable in your own market, where you will face saturation and perhaps even decline.
Karp, H. R.,2005. Green suppliers network: Strengthening and Greening the manufacturing supply base. Environmental Quality Management, 15(2),pp. 37-46.
Ketchen, G. and Hult, T.M., 2006. Bridging organization theory and supply chain management: The case of best value supply chains. Journal of Operations Management, 25(2),pp. 573-580.
Khoo, H. H., Bainbridge, I., Spedding, T. A. and Taplin, D. R.,2001. Creating a Green Supply Chain. Greener Management International, 2(35), pp.. 71-78.
Kouvelis, P., Chambers, C. and Wang, H., 2006. Supply Chain Management Research and Production and Operations Management: Review, Trends, and Opportunities. Production & Operations Management, 15(3), pp 449-469.