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Advances in accounting - Essay Example

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This involves sharing of price and other accounting information between the suppliers and consumers with the aim of reducing the cost of production (Zahirul 264). The writers of this article…
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Advances in accounting
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Download file to see previous pages This research seeks to determine the relevance of OBA in an environment with high competition and the lack of cooperation between the suppliers and consumers. Most companies after exploiting most of the cost reduction methods have resorted to forming supply chains to be competitive in the market. With this, OBA was found to be necessary for reducing cost and thus raised productivity. For OBA to be successful, it requires cooperation and mutual trust between the suppliers and consumers.
The researchers have noted that most companies are not willing to share important information with the buyers. This paper is important since it seeks to address the importance and challenges facing the application of OBA technique in inter-organizational cost management. Despite the challenging circumstances under which OBA is applied, the paper addresses how it can be used for the good of the parties involved and also give recommendations on how to counter the challenges involved. The paper is interesting since it involves interacting with people in the real market situation, and the findings thereof are a true reflection of what is happening in the field. The key reference literatures for this research are
vi. Sharing Sensitive Information in Supply Relationships: The Flaws in One-way Open-book Negotiation and the Need for Transparency, European Management Journal by Lamming, Richard, Nigel D. Caldwell, Wendy E. Phillips, and Deborah A. Harrison (2005)
The above books describe the relevance of OBA to cost reduction and the conditions for the success of the tool to cost management in IOCM. These books seek to describe the challenges facing the implementation of OBA in inter-organization cost management.
The research method chosen for the study is interview. This involved interviewing purchasing experts in the first and second phases and afterward interviewed sales experts. These interviews were done using questionnaires, whereby the questionnaires were sent to ...Download file to see next pagesRead More
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