Certain technologies industries, such as the software development companies, are faced with constantly changing innovations, technologies, short...

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General Management

Certain technologies industries, such as the softwaredevelopment companies, are faced with constantly changinginnovations, technologies, short product life cycles, modulardesigns, frequent manufacturing changes and demandingcustomers.
Under these conditions, what type of relationship would yourecommend for a critical component supplier? And what additionalmeasures would you include in this contract to protect yourbusiness and supplier relationships?

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Please please please LIKE THIS ANSWER so that I can get a small benefit Please Fixedprice contracts are less attractive for the supplier for goods and services characterized by high process or technical uncertainty However if the purchased has a fair estimation of the cost structure of the manufacturer then costbased contracts can be preferable because they permit either upward or downward See Answer

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