There are so many aspects of supply chain relationships that are tied to component pricing that it's no surprise pricing is a hot topic. Much of the compensation in demand creation programs is attached to price. (See related story on page S-6.) Many large customers receive a preferred price from suppliers. Global and long-term contracts contain guidelines and targets on price - usually reductions. Even a unique channel accounting practice - ship from stock and debit - is entirely about price. "Price is usually the basis of the supply chain relationship," says Gerry Fay, senior vice president, Avnet Supply Chain Solutions worldwide.
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