According to researcher Anupam Agrawal, a professor of business administration for the University of Illinois, there are several benefits in establishing relationships with suppliers beyond the first tier. However, most companies are neglecting to reach out to such companies. Agrawal recommends companies establishing such relationships by initiating a “sourcing hub” through which manufacturers and their lower tier suppliers can share knowledge and information about their needs and practices. This would allow companies to get direct information from the original sources where their raw materials come from.
This article is for Premium Members only. Please login below to read the rest of this article.
Not a Premium Member yet? Become one today.