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The Annual Global Conference reminded me of the undeniable value of conducting business with colleagues whom we have actually met.

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Purchase capacity, not products

By BOB PARKER

Instead of simply buying parts and products from suppliers, manufacturers should reserve those suppliers' capacity. By doing so they'll gain more flexibility, better cost control, and higher product quality.

From the Quarter 02 2009 issue

Although the classic model for manufacturing firms relied on vertical integration, modern industrial organizations are built on their supply chains. Take Ford Motor Company, for example. Ford used to bring raw rubber and iron ore in one end of its River Rouge, Michigan, USA, manufacturing plant and push completed vehicles out the other end. Today, however, Ford procures more than 60 percent of the value of an automobile from suppliers....

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