During a recent recession,many manufacturers determined that their suppliers were an excellent source of cost savings.Specific cost-reduction strategies manufacturers have used with their suppliers include:
A) offer help in boosting productivity of suppliers
B) renegotiate contracts
C) set annual across-the-board cost reduction targets for suppliers
D) improve economies of scale by cutting number of suppliers
E) all of the above

Question

Quizplus · Accepted Answer

All of the listed strategies have been used by manufacturers to reduce costs through their suppliers. Offering help to boost productivity can lead to more efficiency and cost savings. Renegotiating contracts can result in better terms and lower prices. Setting cost reduction targets for suppliers incentivizes them to find ways to save money. Finally, reducing the number of suppliers can lead to economies of scale and better pricing.

During a Recent Recession,many Manufacturers Determined That Their Suppliers Were