Article Review - Managing contract and relationship

Harley-Davidson is a legendary motorcycle preparing company of USA. After teetering the brink of Bankruptcy in the year 1989s Harley roared through the 90s with a rejuvenated brand. During this period of sales and production growth, Harley developed incompatible business practice and IT system in different parts of the company. Now Harley is a financially strong company where last year revenue rose 13% to $ 4.6 billion, net income was $761 .

Harley is completion a project began more then two years ago, that it web portal. But it is not only a portal,this is the major key of Harley procurement and supply chain and its developed. Using this portal nearly 300 suppliers of Harley can view the receiving inventory, replenishment altars, shipment notice , performance and financial status. It automated inventory -replenishment process , notice and altars more faster and cheaper then ever before. Inventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. There fore using the portal Harley is getting the full benefit of inventory management and achieving their annual growth rate. With the use of the EDI -based invoice system , supplier paid their payment within seven days of submitting of a invoice . Supplier of Harley also can manage the payable and revealable amount from the portal . This is a financial benefit of supplier. This is a commercial relationship with supplier and Harley-Davidson , Supplier give more 1% extra benefit for quick payment system. This is a cost benefit of Harley.

In the context of relationship management , Harley play a vital roll in the manage of its suppliers. To cut production cost Harley used different Invoice , schedules and business procedure for each of its main factories. Mark Dickson , senior system manager says : So we put in place a set of tools suppliers can view to consolidate requirements. Thus Harley's relationship management help them to make profit. Harley-Davidson also very much aware about the risk management , to face the risk they have implement the MRP system which can help them to minimize the risk of business. Harley's success depend on cutting cost in supply chain , according to analysis who track the company stock.

Using the portal system they can analysis data , make forecast , cutting inventory , distribution and process cost and making revenue day by day . In the view of equity firm analyst , Bryan Knoepp “ They ( Harley's) use many unique process in their supply chain ''. Harley's is working with longtime suppliers to hit annual goals of lower costs , consistent quality , improve delivery performance and continue investment in new technology . This portal is making goals and Harley's want to setup this kind of portal for all factories. By the using of portal Harley's ensuring commercial relationship, cash benefit, risk management and longterm contract with his supplier , on the other hand making low cost product,consistent quality product and good service to its customer,