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The Supply Chain Learns a Painful Lesson

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Jacob
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Supply Network Guru
Re: Role of supply channel
Jacob   11/6/2012 11:20:03 PM
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Barbara, you are right. Most of the companies have their own channel partners, where they are handling the distribution with customers. When the items are passing through different hands/channels, each person will add his own profit over it, which makes the final price more than double of the production cost. Eventhough the OEMs have only a small margin, but the customer is ending up paying many folds of the actual costs.

Barbara Jorgensen
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Blogger
Re: Role of supply channel
Barbara Jorgensen   11/2/2012 12:55:14 PM
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@Jacob: True. But most suppliers aren't set up to handle those transactions--they focus on their top 10 to top 50 accounts. They could bring it back in house--but it will be a big effort. It will come down to ROI--if it is worth it to suppliers to do so.

Jacob
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Supply Network Guru
Role of supply channel
Jacob   11/1/2012 5:42:20 AM
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Barabara, if the dealings are happening directly between the manufacturing/production facility to end customer, such things can be avoided up to ant extend. But when it goes through different channel from production facility to the end customer, different hands/parties are getting involved and hence there are many chances for the inclusion of duplication and counterfeiting the products.

Hospice_Houngbo
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Supply Network Guru
Re: pals first
Hospice_Houngbo   10/31/2012 2:58:15 PM
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@FLYINGSCOT

"collaboration rather than confrontation is the key. "

But still companies are wary about collaboration because some common agreements such price-fixing agreements are deemed non-competitive and therefore unlawful. Competitors' collaboration can occur on a number of levels (such as information sharing to fight counterfeiting) but they should be careful not to fall into anti-trust and illegal arrangements.

FLYINGSCOT
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Supply Network Guru
pals first
FLYINGSCOT   10/31/2012 11:21:20 AM
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I agree that collaboration rather than confrontation is the key.  By sharing information up and down and focusing on best cost, quality and service then everyone should be happy.  It is only when folks get greedy and cut corners then things go pear shaped.



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