Relationship Between Buyer And Buyer

Blanchard  (2009), “successful supplier relationships require two-way information, recommendations, metrics and incentives. Riordan Manufacturing must understand the cost and value of their entire supply chain. Without a detailed understanding of all costs, from raw materials through the end product or service, and the value provided by its supplier in the process, a supplier cannot be evaluated. Therefore, there are several things Riordan Manufacturing can do to improve their relationship with it suppliers. They can incorporate appropriate service levels and metrics into agreement, share critical information as early as possible, plan for major contingencies, expect and reward honesty and finally, make relationship meetings meaningful” (10 Strategies for Managing Suppliers).

Timely knowledge regarding their supply chain helps the company in resolving the problem, which ultimately leads in attracting customers and gaining competitive advantage. It is observed that Tesco can easily get the competitive advantage by considering the element of collaboration at the time of formulating their strategies particularly regarding the supply chain activities for the reason that it would assist them to perform their activities in a more effective manner. However, it is a prior duty of the top officials of Tesco to encourage the collaboration technique in order to enhance the productivity and efficiency of their business operations to the utmost level. It is noticed that most of the large-scale organisations are quite keen to consider all possible measures through which they can easily enhance their business operations without any problem just because of the serious competition in the retail market. Furthermore, it is found that the Tesco supplier network and Supplier innovation group help the organisation to approach the right supplier for right place that ultimately improve their logistics operations and differentiate them from their competitors (Jaffeux & Wieser,

Procurement is one of supply management’s most challenging responsibilities (Burt, 2010). Therefore relationship management is the key to procurement success (Zhang, 2011). The purchasing of services has the potential to turn into relationships with suppliers that tend to focus on trust instead of the transaction (Burt, 2010). With that in mind, procurement should focus on long-term supply sustainability rather than short-term cost-saving (Zhang, 2011). To nurture an organization’s supply base into a fully committed and fully supported external entity requires time, effort and a highly collaborated working relationship (Zhang, 2011). Effective communication within the relationship is indispensable for any procurement outsourcing strategy to prosper (Simchi, Kaminski, Simchi, 2008). Failing to establish and manage good relationships could cause irreversible and catastrophic damage to a procurement outsourcing strategy. One of the most common outsourcing relationship problems is that organizations tend to sit at opposite sides of the work-group table instead of next to each other (Vitasek, 2010). The application is that the two organizations are working against one another instead of work with each other to solve an

Benavides, L., De Eskinazis, V., & Swan, D. (2012, June 22). Six Steps to successful supply chain collaboration. Supply Chain Quarterly. Retrieved August 30, 2016, from http://www.supplychainquarterly.com/topics/Strategy/20120622-six-steps-to-successful-supply-chain-collarboration

The results showed that the greater the complexity of the supply chain model the more negatively it impacted performance. And factories that have used a simple supply chain model have shown to produce a more successful level of performance. Shah et al. (2008) used a field approach of study to examine how a particular health care supply chain was able to enhance performance by decreasing service time and increasing quality in a distributed network of health care providers. They concluded that the use of these principles improved efforts and the efficient coordination permitted a dramatic improvement to the supply chain performance. However, Fredenall et al. (2009) took the part of the opposition on the issue. His investigation into internal supply chain issues concluded that consensus between departments does not sufficiently improve workflows (Debashri & Asoke,

In automotive industry, the direct buyers mostly are dealerships, but the indirect buyers are the consumers who purchase vehicles from the dealers. There are several factors that determine the buyers’ negotiating capability toward the automakers. Porter (2008) reveals those factors as follow:

Supply chain that is helpful in getting the right resources from suppliers and later deliver them to customers in a timely manner. This long-term positive impact is an additional value for BT Group (Wikiwealth.com, 2016).

(Frohlich and Westbrook, 2001) demonstrates the effects of supplier–customer integration on the performance of the organization. OBB purchase processing can become efficient with multi-pronged interactions.

Supply chain management is increasing in importance because “In today’s hypercompetitive environments in which competition is among supply chain networks rather than individual firms, firms are confronted with the need to effectively manage increasingly extending supply chain activities beyond the boundary of the firm,” (Lee, B.C., et al., 2010, p. 657). As stated previously, the broader the supply chain the more risks the company is open to. The second line of protecting the supply chain is creating strong relationships with the suppliers. The longer a company has a supplier, the stronger the relationship (Bayraktar, 2010), but to get to that point there needs to be similar: corporate and national cultures, vision, technology rate change, and quality information to share (Lee, B.C., et al., 2010). When all of these characteristics align, there is trust and open communication. Since supply chain management can be considered information sharing (Lee, B.C., et al., 2010), trust and open communication are necessary for information sharing to take place. Without trust and open communication, there is a very weak supply chain and even more vulnerability to risks. Trust and open communication are extremely important in global supply chains. Extra effort from the operations manager is needed when languages and time zones complicate communication.

It is dominantly the buyer that works to bring the suppliers and retailers together. It is part of a buyer’s role to work closely and build up relationships with suppliers to ensure everything runs smoothly and quality standards are being met on behalf of the retailer. There are a number of factors that a buyer must take into consideration when sourcing the right supplier for a retailer. The suppliers must be able work efficiently and effectively to follow all instructions given to them by the buyer, this is to ensure that the correct standard of work, set by the retailer, is produced. For the relationship to work, communication is key. The suppliers must have consistent communication with the buyer, whether it be written, verbal or electronic in order to avoid any problems and solve any issues. Retailers want to keep their

This paper aims to detailed comparison of best practices with collaborating information in supply chain strategic, Supply chain management is an area of importance. This paper was wrote by a survey of a large number of publications on supply chain management for context and an industry expert interview. This literature review analyses the case study of a Reco market to show its best practice supply chain strategy. The logistics and supply chain decision structure, distribution processes and future supply chain improvement initiatives can be affected by which existing, and prospective business applications. On another hand, Collaboration in the supply chain will make a contrition to increase competitive advantages operational

The research draws much attention to value as an important relationship with the customer and supplier, generated together through its value-chain, how it is the cumulative work of the organisation that equals the value of the product and or service to the customer. The product/service is just one

A just-in-time system can only exist in an atmosphere where suppliers are reliable and will work to minimize the risk of not having the needed input of production (Federal Reserve Bank of St. Louis, 1995). A just-in-time system puts increased stress on both the supplier and purchaser in the course of its implementation and places the purchaser at the mercy of its key suppliers, meaning the supplier must never be wrong in terms of quantity or quality (Karlsson & Norr, 1994). Optimally a supplier themselves will be on or working towards a just-in-time system themselves, but this is not always possible (Fallon & Browne, 1988).

An effective performance-management system helps a company to ensure that any long-term project is on track and delivering the results it should. In supply chain collaboration efforts, both participants should use the same performance-management system. By building common metrics and targets—and jointly monitoring progress—companies avoid the misaligned incentives that damage so many collaboration efforts.

Then a tendering process is established, tenders are evaluated and a supplier chosen. At this stage a contract is drawn up, with specifications for performance, standards, timelines, etc. to manage the relationship between the buyer and seller.