The case introduces students to the concept of provider management with scorecard and other performance measures and also the concept of Total Cost of Ownership. The objective of this case would be to enhance the pupil's understanding of the purpose of performance measures in the inter organizational setting - buyer supplier partnerships. In particular their part in managing the purchase apportionment decision made by the buyer. The total expense of ownership theory explains the role of management accounting advice in the purchase apportionment decision.
Purchase allocation choices are made out of respect to various factors including previous performance, tactical importance and stock demands. Understanding the extent to which these factors are in play in the purchase allocation decision by buyers is very important to the development of contemporary management systems in settings where there is increased outsourcing of non-core value added activities. Greater duty falls on the management to adopt systems which will help them to manage and fulfill international standards for quality along with delivery as more elements of the global supply chain are being found in China.
Strategic Performance Measurement of Suppliers at HTC case study solution
PUBLICATION DATE: June 09, 2011 PRODUCT #: HKU950-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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