Case: Toyota, Ford, Gm, And Volkswagen – Some Differing Opinions
1. GM and Ford have quickly pushed the development of large Internet
sites to create an environment where suppliers must compete for
business. Ford and GM argue that these Internet sites should reduce
cost because the negotiations are streamlined. How do you think the
suppliers view these sites?
Some suppliers, depending on their size might not have the technological infrastructure to
participate in the AutoX-change. This will obviously limit their ability to work with theses
automakers. Suppliers who have established relationships and contracts with automakers
will question the long-term viability of these relationships. The larger suppliers that supply
multiple components will view this as a positive. This might provide them with opportunities
to expand their business. One critical question, which will be asked by every supplier, is how
will the e-procurement system affect prices. The AutoX-change will obviously encourage and
attract more suppliers. This......
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Approximate Word Count: 613
Approximate Pages: 3 (250 words per double-spaced page)
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