Accession Number : ADA294996

Title :   Development of Standard Operating Procedures for the Formation of Partnerships with Suppliers of the Caterpillar Corporation.

Descriptive Note : Master's thesis,

Corporate Author : PURDUE UNIV LAFAYETTE IN

Personal Author(s) : Conklin, Daryl L.

PDF Url : ADA294996

Report Date : 1995

Pagination or Media Count : 73

Abstract : Manufacturers world wide are seeking ways to reduce costs without lowering the quality of their product. The cost of purchased materials accounts for more than sixty percent of manufacturers' expenses. In a market where quantity is giving way to quality, inefficient suppliers are being passed over. This causes suppliers to become prime targets for cost cutting by big companies. Only suppliers with the highest quality product, delivery record and desire to meet the needs of the manufacturing sector will survive. The traditional view of the supplier-manufacturer relationship has been adversarial. Manufacturers placed emphasis on multiple-sourcing with competitive bidding to acquire short-term contracts. Technology sharing between the buyer and supplier was very limited. Work on new projects was awarded to a supplier primarily on the basis of the low bid. Cooperative manufacturer and supplier relationships are lacking in the United States. Manufacturers and buyers of many varieties are utilizing suppliers outside of the country to obtain the supplies they need at lower cost and higher quality. This is a dilemma for suppliers, as they struggle to stay competitive. Manufacturers such as Caterpillar are seeking long term partnerships with their suppliers to ensure positive business relationships in the future. By developing partnerships, manufacturers and suppliers may share information, conduct joint problem solving activities and share technology in a mutually dependent association. (RWJ)

Descriptors :   *COMMERCE, *CONTRACTS, *COST ANALYSIS, *LOGISTICS MANAGEMENT, COMPETITION, UNITED STATES GOVERNMENT, MANUFACTURING, MARKETING, ECONOMICS, LOW COSTS, CONTRACTORS, EFFICIENCY, PROBLEM SOLVING, COSTS, SHORT RANGE(TIME), QUALITY CONTROL, STANDARDIZATION, JOINT TEST AND EVALUATION.

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Logistics, Military Facilities and Supplies
      Government and Political Science
      Sociology and Law
      Mfg & Industrial Eng & Control of Product Sys
      Test Facilities, Equipment and Methods

Distribution Statement : APPROVED FOR PUBLIC RELEASE