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The following five mini casestudies explore a few high-profile companies that have managed to sustain their supply chain cost-reduction efforts and keep expenses under control. per chip were bearable for units selling for $100, but the price of the new chip was a fraction of that, at about $20. Supplier communication.
Process Performance What if the problem isn’t connected to products, customers, or pricing but lies instead with process performance? Supply/Inventory Management Inventory management problems and supplier relationship issues , too, can creep in over time and eat away at your profit margins.
The Factory Gate Pricing (FGP) and Primary Freight (PF) strategies, as adopted by major grocery retailers, are causing a shudder up the spine of many retail suppliers. What are Factory Gate Pricing and Primary Freight strategies? Under the FGP and PF models, the retailers collect the products from the suppliers factory gate.
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