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The supply chain manager who was previously responsible for the chassis manufacturer found
2023-03
The direct result of the adjustment is a significant decrease in the overall profitability of the supplier, with the company becoming their unprofitable or less profitable customer, and its business focus shifting to other more profitable customers, resulting in a significant decrease in the supplier's on-time delivery rate, quality, and service level towards the company. For example, before the new manager took office, the quarterly on-time delivery rate of all suppliers was above 96%; Within a few months of taking office, several suppliers' on-time delivery rates have fallen below 90%.
Secondly, the supplier has lost trust in the company. When the supply chain manager who was previously responsible for chassis manufacturers took over this business, he found that several major suppliers were basically in a state of loss: on the one hand, due to the overall economic downturn, and on the other hand, due to years of naked price pressure. As a result, the supplier has neither the economic capacity nor the power to bear the engineering and technical strength, as the developed new parts are likely to be transferred to competitors in the next round of inquiry, which directly affects the company's development of new products.
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