Topic > Essay on Supplier Relationships - 1608

The idea of ​​strategic buyer-supplier relationships has gained significant momentum, and supply chain partners work together to mutually plan and execute strategic initiatives aimed at achieving customer satisfaction customer service (Mohr and Spekman 1994).Strategic Buyer-supplier relationships focus on initiatives that improve the interpersonal aspect between members of the supply chain and create a win-win situation for both buying and supplying companies (Paulraj and Chen 2005). Instead of using the old-fashioned, remote and adversarial way of doing business with a large number of suppliers, companies are emphasizing the need to work closely and cooperatively with a limited number of reliable suppliers. Nowadays, supplier contracts are becoming long-term and suppliers share sensitive information about their quality performance, processes and costs with the buyer. It is suggested that a company would benefit from placing a greater volume of business with fewer suppliers using long-term contracts (Hahn, Pinto, and Brag 1983; Giunipero, Handfield, and Eltantawy