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Supply Chain Development for the Lean Enterprise: Interorganizational Cost Management

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Four questions determine whether a company is using interorganizational cost management.

  • Does your firm set specific cost-reduction objectives for its suppliers?

  • Does your firm help its customers and/or suppliers find ways to achieve their cost-education objectives?

  • Does your firm take into account the profitability of its suppliers when negotiating component pricing with them?

  • Is your firm continuously making its buyer-supplier interfaces more efficient?

If the answer to any of these quest...