Change of supplier costs

Supplier change costs are those financial resources that a customer would have to raise if he were to change from a supplier with whom he has a business relationship to an as yet unknown supplier.

It is assumed here that processes are more efficient in the context of ongoing business relationships because the conditions are known and know-how exists on both sides. A change of supplier causes costs because interfaces have to be redesigned and know-how with the new suppliers has to be generated first.

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Weitere Erklärungen zu Anfangsbuchstabe "L"