CHAPTER 3
CREATING AND MANAGING SUPPLIER
RELATIONSHIPS
By; Vikneswary Suresh
INTRODUCTION TO SUPPLY CHAIN
,Supplier Partnerships
▪ Supplier partnership is commonly accepted view for last couple of decades.
▪ Supplier Partnership is Important in achieving win-win competitive
performance for the buyer and supplier -- these require a strategic
perspective as opposed to a tactical position
▪ Supplier Partnership refers to “A mutual, ongoing relationship between a
buying firm and a supplying firm involving a commitment over an
extended time period, and entailing a sharing of information as well as
sharing of the risks and rewards of the relationship”
, Successful Partnerships
▪ Focus on continuous improvement
▪ Share information, risks and successes
with suppliers to establish a long-term
mutual partnership.
▪ User quantitative measurement to
judge if improvements are performed.
▪ Involve the suppliers at an early stage
in the design process.
▪ Investment in education and technical
support for the suppliers are a key to
success.
▪ Reducing the number of suppliers and
trusting a few suppliers is the better
basis for quality improvement in
supplier partnership.
CREATING AND MANAGING SUPPLIER
RELATIONSHIPS
By; Vikneswary Suresh
INTRODUCTION TO SUPPLY CHAIN
,Supplier Partnerships
▪ Supplier partnership is commonly accepted view for last couple of decades.
▪ Supplier Partnership is Important in achieving win-win competitive
performance for the buyer and supplier -- these require a strategic
perspective as opposed to a tactical position
▪ Supplier Partnership refers to “A mutual, ongoing relationship between a
buying firm and a supplying firm involving a commitment over an
extended time period, and entailing a sharing of information as well as
sharing of the risks and rewards of the relationship”
, Successful Partnerships
▪ Focus on continuous improvement
▪ Share information, risks and successes
with suppliers to establish a long-term
mutual partnership.
▪ User quantitative measurement to
judge if improvements are performed.
▪ Involve the suppliers at an early stage
in the design process.
▪ Investment in education and technical
support for the suppliers are a key to
success.
▪ Reducing the number of suppliers and
trusting a few suppliers is the better
basis for quality improvement in
supplier partnership.
