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Essay text:
This will obviously limit their ability to work with theses
automakers. Suppliers who have established relationships and contracts with automakers
will question the long-term viability of these relationships. The larger suppliers that supply
multiple components will view this as a positive. This might provide them with opportunities
to expand their business. One critical question, which will be asked by every supplier, is how
will the e-procurement system affect prices. The AutoX-change will obviously encourage and
attract more suppliers. This might result in drastic reduction in the prices of parts, especially
if the automakers adopt a “bully“ stance where prices are concerned...
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