Supplier Relationship Management Essay

| A company 's suppliers, their supplier 's suppliers, and the processes for managing relationships with them constitute

Objectives: 1. View and record data from sample MM, 2) Create new MM for finished and semi-finished part, and raw materials.

The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry. Toyota as a name, a company, and as a brand has become synonymous with Quality.

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).

To keep up with an effort to develop a seamless organization between suppliers and buyers; many boundaries that are in place

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

Supply Chain Management (SCM) has been defined by Supply Chain Management Institute to be “the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders”(SCM-Institute, 2016).

A buyer should be ultimately striving to maintain a dominant power leverage position over their supply base. It is never wise to allow a supplier to have more power or the dominance position. It is possible to maintain a buyer dominant power position and simultaneously build a collaborative alliance with a supplier. This is shown in the end of the case when VW builds the factory in Brazil. VW is still in the dominant power position and they are working side-by-side with suppliers in the factory building alliances and stronger relationships. By working together, on the same factory floor, VW is able to learn a great deal about how the suppliers do their work and give VW a chance to meet and know the actual employees of the supplier.

Most companies lack the ability to quickly contact each outsourced supplier, vendor or licencee in their supply chain. Many companies have done alot of work in the area of managing global supply chains better. A web based Supplier Ethical Management (SEM) platform has been developed which allows companies to maintain contact information for most or all of its suppliers and communicate critical information to them on a regular basis. Using an SEM platform is probably

"Despite the odds, Toyota and Honda have managed to replicate in an alien Western culture the same kind of supplier webs they built in Japan. Consequently, they enjoy the best supplier relations in the U.S. automobile industry…." (page 3 of the Liker & Choi article). Briefly describe the authors' explanation for why Toyota and Honda succeeded where the "Big 3" failed in terms of effective supplier relationship management. Do you agree with Liker & Choi's assessment? Please explain why or why not. Are there any barriers to prevent Ford and GM from emulating Toyota and Honda's approach to supplier relationship management?

The main goal of Customer relationship management is to create a strong bond between customers and the company. The strong bond can be build by focusing on the two main objectives of CRM. Providing the organization and all of the employees that treat customers with a single and complete view of every customer at every touch point and across all channels and providing the customer a single and complete view of the company and its extended channels (O’Brien, A & Marakas, G. 2004).

All projects involve the need to determine whether the project work will be done in-house, external to the organization (outsourced), or a combination of the two. This is called “make-or-buy analysis” and is an essential part of project planning, as well as a tool/technique integral to procurement planning

According to our class text Supply Chain Management’s goal is to create fast, efficient, and low-cost network of business relationships to get a company’s product from concept to market. In order to understand the goal we must know that the supply chain is the process the raw materials of a product go through in order to be available to the consumer. The relationships that the business creates are needed in order to create the product, each process the product goes through creates value, the supply chain is often called the value chain. Internet technologies are increasingly making the supply chain management process much more efficient and worth the initial investment. The supply chain management life

Procurement also is the selecting from a range of options for acquisitions, and in analyzing and identifying the requirements for the purchasing, negotiating contracts, picking the suppliers, the creating of strategic alliances with suppliers, or the acting as a liaison between the user and suppliers. The current state of procurement practice reflects the dynamic interaction between the opposing forces, leaving the remaining in limbo. The two complementary process is involved in the procurement is vendor selling and customer buying. The best practice in the procurement process is the Exchange-Point Analysis. The exchange points highlight the opportunities for the process integration, which are noted for performance improvement opportunities. The process integration is to convert critical aspects for the supply chain process and procurement from one based on commercial norms about markets and current laws to the one that relies upon goal alignment and trust through the chain of command. The current best practices in industry or government project management include the belief based operations between vendors and customers (Morris & Pinto,

Shiv industries, the factory which is situated and based in Raipur manufactures molding rubber. This molding rubber is used in manufacturing cars now facing their profits is falling down because of the increased competition in the many cars manufacture company which were global companies in India after the opening up of the Indian economy to the international market. Despite good presence in the automotive sector it has only 5 %market share in the replacing sector. The main problem for the profits falling down is the shiv industries is located were far from the other companies which were situated in the Gurgaon in the district of Haryana. Many of the car dealers were situated in the Gurgaon were the market we can get profits. Now the shiv company should be replaced to the Gurgaon in Haryana to increase the profits because due to replacing their company to the Haryana they can easily supply the finished products and more over they can decrease the transportation cost also. This cost adds no value to the product and hence can be considered waste.so to eliminate this waste they need to relocate the