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  Best Practices: Planning: Require Formal Supply Market Assessment
Case Study


Company: Auto manufacturer

Issue: Aluminum engine component subject to substantial price fluctuations

Supply Market Assessment: The raw material price will remain highly volatile.

The supplier base is shrinking and located off-shore.

There are alternative materials that could be used.

Outcome: Partnered with existing supplier of plastic components to develop

engine capable plastic component.

Unit price comparable to average aluminum component cost but total

cost reduced through more reliable supply.


Best Practice | Case Study | Commentary



April 5, 2000
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