ASSIGNMENT # 3

SUPPLIER PARTNERSHIP

ANS # 1: -
IBM achieved cost reduction by using internet for procurement in such a way
that by using EDI they were required to have a van setup for the transfer of data as a server
to transmit data to the supplier. It was a costly method as some supplier were not interested
in doing business with the company in this method because it was costly as they required
a setup to transmit data. By using internet that is world wide web, they can easily send data
to the suppliers as it does not require a costly setup for data transfer as compared to EDI.

ANS # 2: -
For small suppliers, they use the technology like fax and phone ordering which
is costly and time taking. In order to save time, they use internet because in this way the
cannot share data through phone calls because due to phone calls they pay huge bills for
communicating and for fax there will be required paper and have to maintain the machine
regularly which is costly. So, due to internet they can build strong relationships with the
suppliers and make the communication easy.

ANS # 3: -
IBM believes that by using world wide web they can strengthen their relations
with the suppliers in such a way that by using this method they can easily communicate
with each other and both parties have no such loss by using this technology and as result,
they could be able to develop strong alliances.

ANS # 4: -
By using internet, they can reduce the mistakes in such a way that they could
easily eliminate it by using internet. How it is possible? We can take an example that IBM
have typed wrong prices for two products, they can either email them if they have sent it
to the suppliers or they can eliminate themselves by reviewing the whole document which
they want to share with the suppliers.

ANS # 5: -
It helps the IBM suppliers in such a way that they could be able to communicate
or send documents to each other within seconds as it is cost free and time saving method
and they could communicate with each other whether they are working miles away from
each other. By one click the can communicate with each other and as a result the will have
built strong relations with each other and have their alliances stronger.

NAME: MUHAMMAD ABUBAKR SIDDIQUE

REG.NO # BSME01163213

SECTION: C