Which THREE of the following techniques would improve the supply chain of LMN?

LMN sells fashion clothing at competitive prices through its own retail stores. The clothes are manufactured for LMN by contractors in other countries.

In the past 4 years LMN has progressively lost market share to rival shops and online stores. This has been the consequence of poor designs, poor quality, and poor customer service.

In the past 3 years LMN tried to respond to this declining market share in several ways:

• Used e-sourcing to increase the number of suppliers LMN uses in order to obtain a larger choice of designs.

• Used e-procurement to buy in greater quantities to reduce cost per item.

• Warned each supplier that LMN will use a different supplier unless prices are reduced and better designs provided.

• Closed its own design studio to save costs, relying instead on its suppliers for designs.

• Reallocated budgets away from funding for customer research towards

increased advertising.

• Avoided costs of product returns by making it difficult for customers to return items for a refund.

• Cancelled investment in a Customer Relationship Management system (CRM) to use the funds to finance its rising inventories.

You have been asked to suggest ways to improve the supply chain of LMN. This requires you to make a presentation to the Board of LMN.

Which THREE of the following techniques would improve the supply chain of LMN?
A . Pull not push
B . Partnership not antagonism
C . Customer relationships not transactions
D . Websites not shops
E . Make not outsource

Answer: A,B,C

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