ABSTRACT
The last aspect of interorganizational cost management focuses on increasing the efficiency of the buyer-supplier interface. This interface includes all activities and processes associated with the transfer of goods or services from one firm to another. Joint improvements are those that require both the buyer and supplier to take cooperative and coordinated actions to increase the efficiency of their interface. One of the major initiatives that is typically undertaken is to use information technology to automate the information transfer between the two firms. The other is to standardize the order-delivery process so as to reduce its cycle time. Buyer-initiated improvements require that the buyer change its behavior in ways that are beneficial to the supplier, although they sometimes also require minor changes at the supplier. Supplier-initiated improvements require that the supplier change its behavior in ways that are beneficial to the buyer, although they sometimes also require minor changes at the buyer.
