| COMPARE |
The Old Way |
The New Way |
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Subcontractors and suppliers are expendable. |
Subcontractors and suppliers are partners. |
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Objective |
To control costs by squeezing the best price possible out of subcontractors and suppliers. |
To enlist the collaboration of subcontractors and suppliers to enhance quality and increase value added. |
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Method |
The establishment of a competitive bidding process which pits various subcontractors and suppliers against one another. Purchasing decisions are based on low sticker price. Subcontractors and suppliers are "traded in" when a cheaper... Read the rest in... |
The establishment of long-term, close, mutually beneficial relationships with trusted subcontractors and suppliers who can demonstrate the ability to continually improve their operations. Purchasing decisions are based on the firm’s quality. Subcontractors and suppliers are only dropped when they demonstrate an inability to... Read the rest in... |
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Reasoning |
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Internal Systems |
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Frame of Action |
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Subcontractor/ Supplier Outcome |
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Market Outcome |
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Results |
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