GMS 401 Chapter Notes - Chapter 2: Outsourcing
Document Summary
Competitiveness ability and performance of an organization in the market compared to other organizations that offer similar goods and a services. Depends on capabilities (developed by focusing on a limited range of goods. Key purchasing criteria: major elements influencing a purchase . Price all other factors equal, customer chooses cheapest option. Quality characteristics of a good or services determined by it"s design, material, workmanship, performance and consistency. Variety choices of models and options. Order qualifiers purchasing criteria that customers perceive as minimum standards of acceptability to be considered for the purchase. Order winners purchasing criteria that cause the selling organization to be perceived as better than competition. Competitive priorities - the importance given to operations characteristics: Quality producing products free of defect. Flexibility variety of goods and services, customization and modification: have general-purpose equipment, multi-skilled workers and excess inventory. Delivery reliability and speed: consistently and promptly meet promised due dates: faster and more reliable resources and processes.