Strategic procurement and commercial relationship

Résumé du document

‘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.

Extraits

[...] Strategic procurement and commercial relationship The idea that purchasing should become a strategic function within organisations was developed by Farmer in the 1970. Since then there has been considerable support for purchasing being seen as a value adding function to the firm. According to Landeros and Monczka (1989) “Purchasing can support the firm's strategic positioning using co-operative buyer- seller relationships”p100. Relationship and Partnership: definitions and goals ‘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. [...]

[...] To meet these needs, the purchaser has the choice between two types of relations. Indeed, there is the simply relationship and the mutual relationship. It is also justified to wonder how the purchaser chooses the type of relation which it will maintain with his suppliers. For that it has various criteria: the first strategic, there is only one possible supplier and it is a provisioning with long terms; for example, companies of new technology. In the medium, it is tactical, it is for a medium-term supply. [...]

[...] 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, P. (1994) Creating World Class Supplier: Unlocking mutual Competitive AdvantageFinancial Times/ Pitman Publishing. - Jessop, D. [...]

[...] (1996) & (1993) Selected Readings in Purchasing and Supply . The Chartered Institute of Purchasing and Supply. - Macbeth, D and Ferguson, N. (1994) Partnership Sourcing An Integrated Supply Chain Approach. Financial Times/ Pitman Publishing - Saunders, M. (1997), Strategic Purchasing and Supply Management. 2nd edition. Financial Times/ Pitman Publishing CIPS - Womack, J.P., Jones, D.T. and Roos, D. (1990) The Machine that Changed the World: The Triumph of Lean Production, Rawson Associates: Macmillan -Barker.R, (2007), Store management, lecture 6power point. [...]

[...] A partnership is a strategic alliance or relationship between two or more people. Successful partnerships are often based on trust, equality, and mutual understanding and obligations. Several studies show the trust is inevitably mentioned as an important variable in the development and maintenance of relationships. Partnerships can be formal, where each party's roles and obligations are spelled out in a written agreement, or informal, where the roles and obligations are assumed or agreed to verbally. You may be able to choose your partner or, as is often the case, your partner may be assigned to you. [...]