Page 113 - E1 Integrated Workbook STUDENT 2018
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The purpose of the operations function
3.3 The strategic supply wheel - Cousins
The wheel depicts the corporate supply strategy at the hub of the
wheel and underlines the need for an integrated approach to supply
strategy involving a balancing of all spokes of the wheel.
Organisation
structure
Performance Corporate and Relationships
measures Corporate and
supply
supply
strategy
strategy
Competencies Cost/benefit
Relationships with suppliers
Past approach – competitive (opportunistic) relationship, e.g. using tendering
to minimise the cost of purchases.
Modern approach – collaborative approach aiming to work with the supplier
and to use their knowledge and skills to reduce costs and improve quality.
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