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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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