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As
a subcontractor in the aerospace industry, Klune Industries
faces extreme price competition. Companies' buyers are aggressive in lowering costs by
using fewer suppliers and developing strategic relationships.
Current company contracts require set part numbers owned for
the life of the program. These contracts lower management
costs because fewer suppliers are used compared to previous
contracting methods.
Suppliers
are expected to self-inspect hardware to deliver directly
to the companies' assembly line. Klune Industries presently
holds four inspection stamps for major customers.
Customers
are increasing the measures required to determine supplier
delivery and quality support. In multinational companies that
may have several divisions or departments, the trend
today is to consolidate the vendor performance statistics.
It is essential for Klune Industries to complete every job
with 100% quality and on time delivery. Klune Industries is
measured on all the business activity for the overall corporation.
If Klune Industries can't perform to the overall standard
we may lose our stamp for quality and ultimate customer qualification.
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