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In supplier partnerships, state the key characteristic of the products or services of business organizations forming strategic partnerships, and explain why Answer

Ans: The key characteristic of the products or services of business organizations forming strategic partnerships can be grouped into six main categories: cost, quality, cycle time, service,

Cost:

Price

  • Logistics costs (Transportation, Inventory, Administration, Customs, Risk and

damage, Handling and Packaging)

  • Operating costs
  • After sales service costs

 Quality performance (e.g., ISO 9000 accreditation)

  • Marketability
  • Durability
  • Ergonomic qualities
  • Flexibility of operation
  • Simplicity of operation
  • Reliability

cycle time

Speed to market

  • Delivery lead time
  • Development Speed
  • On time delivery
  • Fill rate

 Service

  • Ability to modify product
  • Supply variety
  • Technical support
  • After sales services (e.g., Warranties and Claims policies)
  • Flexibility (Payment, Freight, Price reduction, Order frequency & amount)

• Delivery frequency