‘Supplier relationship' is an expression that, it can be argued, has positive connotations, indicating as it does that a relationship between buyer and supplier exists and that it is such that both sides derive benefit from it. However, this has not always been the case, since, traditionally, such relationships have tended to be adversarial, with each side trying to gain maximum advantage and leverage over the other. In a traditional buyer-seller relationship, each party seeks to leverage its power often to the detriment of the other. There exist several kinds of relation between suppliers and purchasers. The transactional relationship is a simple exchange between the two. The purchaser gives money and the salesman gives the goods.
[...] Concept of - in the negotiation is reached when purchaser and supplier achieve at the same time the goals of the purchaser and those of the supplier. Consequently, the performance is reached to two, and purchasers and suppliers build their performance together. Reference list - Baily, P., Farmer, D., Jessop, D., and Jones, D. (2005) Purchasing Principles and Management Financial Times/ Pitman Publishing - Cox, A. and Lamming, R. (1999). Strategic Procurement Management: Concepts and Cases The Chartered Institute of Purchasing and Supply - Lysons, K. and Farrington, B. (2006) Purchasing and Supply Chain Management (7th Edition), Financial Times/Pitman Publishing ISBN 0-273- 69438-3 - Hines, [...]
[...] Advantages that the two parts have worked units The performance of a company combines, starting from inputs (raw materials), of the methods/processes, the means/machines, and the resources, which makes it possible to create added-value, by producing economic performance, innovation and satisfaction customer. The performance of the supplier is related to the performance of the purchaser. It is with the purchaser to give desire to the suppliers for giving the best. A good relationship implies a concept emotional. Good relationships are fundamental to advance and give desire to the supplier for making profit with the company in priority from their innovation, to place the company in priority compared to at the competitors so that this one can profit from a competitive advantage. [...]
[...] The growing complexity of commercial relationships has meant that, over recent years, across most industry sectors, supplier bases have been rationalised so that now fewer “preferred” suppliers are in direct commercial contact with original equipment manufacturers (OEMs) and prime contractors (primes). Companies must choose which relations they want to have with their suppliers. There exist two models, the leading model is that of Peter Kraljic (1983) and the second model is Andrew Cox (1996). Kraljic (1983) used this model to propose a generic strategic supplier management strategy. [...]
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