From perspective of suppliers, Trumpfsets high performance standards when it is selecting its suppliers so that itcould maintain and expand the position as a provider who could offer highquality and innovative products and services (Trumpf Inc.
). These standardsinclude that suppliers have the ability to provide high-quality, competitiveprice, low replacement times and highly flexible products and services (Trumpf Inc.). These standards arethe fountain for Trumpf to produce its products at high quality degree. Furthermore,Trumpf also requires suppliers’ technical experts to make sure that keycomponents and services fulfill the requirements (Trumpf Inc.). As a leader in theindustry, Trumpf also sets agreements with suppliers to avoid misunderstandingor conflicts in further collaboration (Trumpf Inc.).
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These agreementsare named Conditions of Purchase and Goodsdelivery guideline (Trumpf Inc.). Moreover, orderswill be awarded when the total costs, supplier status and any availablesupplier evaluations are at a high performance level (Trumpf Inc.). The effect of theaction is not only to motivate suppliers but also employees from Trumpf.
Before introducinghow Trump increases its efficiency and responsiveness, one point has to bementioned. Efficiency and responsiveness cannot be improved at the same time, andthey have to be trade off by the company. Since efficiency stands for lessinventory and making customers willing to pay, and responsiveness representsmore inventory and customer’s priority is cost or price. Generally, basedon the case study, Trumpf’s supply chain strategy was not mentioned. In addition,the supply chain strategy is implemented to organize the material procurement, transportationof material, manufacture of products and distribution of products. As a result,methods that undertook by Trumpf in order to improve its efficiency andresponsiveness will be explained from the perspective of the supply chain. Generallyspeaking, the supply chain can be divided into three phases.
The first phase isthe supply process, which enables a company to organize the relationship withthe suppliers, also the transportation of goods (Dawei, 2011). The second phase isthe manufacturing phase, which requires products to reach goals (Dawei, 2011). The third phase isthe customer phase, which needs a company to deliver the product to customersfollowed by specific requirements, and put efforts on the after sale service (Dawei, 2011). In this chapter,how Trumpf utilizes its supply chain strategy to increase its efficiency andresponsiveness will be introduced.