This website uses cookies to ensure you have the best experience. Learn more

Business To Business Relationship Management Essay

1738 words - 7 pages

BUSINESS TO BUSINESS RELATIONSHIP MANAGEMENT

Strategic Sourcing and Supply Chain Management
04/25/11

CONTENTS
Abstract 3
I. Stages of Buyer-Supplier relationships 4
II. Types of buyer-supplier collaboration 5
III Supplier evaluation and selection 6
IV. Steps to establishing a Buyer-Supplier Collaboration 8
V. Barriers to establishing a succesful Buyer-Supplier relationships 9
VI. Benefits of a successful Buyer-Supplier Collaboration………………………………………………………..9
Conclusion 10
References 11



Abstract
In today’s competitive business world, having the right kind of buyer-supplier ...view middle of the document...

Orders are usually ready to be shipped 36 hours after the customer placed the order. As a result, Dell is still one of the most profitable computer manufacturers in the world today.
The focus of this paper is on the development and management of business relationships and understanding the dynamics of collaboration in buyer-supplier relationships. In this paper, I will indentify different collaboration methods, potential obstacles and benefits. Most of the conclusions drawn in this paper are written from the point of view of the buyer.

I. Types of buyer-supplier collaboration

Most buyer-supplier relationships begin from an arm’s length relationship. In this stage, the level of interaction between the buyer and supplier is very low. Both parties only contact each other to exchange essential commercial details to fulfill order placement and payments. The main goal for both parties at this level of the relationship is to minimize the cost and time it takes to complete the transaction.
The Product and Process information exchange buyer-supplier relationship level involves the exchange of proprietary internal information such as sales/forecasting or cost information. Firms that have this level of relationship, try to make sure they have the right amount of product available to meet end customer’s demand. This is common with retail stores and their suppliers. Cost information in used to determine sale price and historical sale information is used to forecast potential demand.
Operational linkages: This level of relationship requires the linkage of buyer and supplier’s operating systems and procedures to facilitate fast flow of information, goods, services and payment. e.g Walmart’s suppliers have access to Walmart’s systems and can tell when inventory is running low and they need to replenish a particular store.
Co-operative norms level of collaboration usually involves a legal contract that specifies what is expected from each party and when. Such agreements usually have an expiration date and a termination clause. For example apple and ATT’s collaboration on the I phone. While the Relationship specific adaptation is the highest level of collaboration effort between a buyer and a supplier. Buyers and suppliers engaged in this level of collaboration make non-transferable investments in each other’s business to enhance the performance of each other’s products or services. Such relationships usually last for a very long time. Examples of such investments could be adaptation of products or services to improve a partner’s product performance or even building a plant close to the buyer’s manufacturing plant or distribution center.

II. Supplier general evaluation and selection criteria

a) Price, quality, and delivery: Supplier’s ability to provide quality products at a reasonable price is an important part of making the buyer more competitive against their industry rivals.

b) Management...

Other Papers Like Business To Business Relationship Management

Business Management Essay

347 words - 2 pages dichotomy • Differences in ▫ Market structure ▫ Buying behaviour ▫ Marketing practices IIM Ranchi PGDM 2014-16 Market Structure • Demand ▫ Derived vs. direct • Volatility of demand ▫ Greater • Elasticity of demand ▫ Less elastic vs. more elastic – perverse (?) • Market size ▫ Larger • Geographic concentration ▫ Often clustered vs. usually dispersed IIM Ranchi PGDM 2014-16 The Accelerator Effect • Due to derived

Business Management Essay

334 words - 2 pages Ethics and Compliance Wal-Mart is a company that has been in business for many years and seems to be going strong. Ethics can play a big role in how a company does and if they will survive through the years. We will be looking at just what the role of ethics and compliance is in the financial environment of Wal-Mart. There are procedures that are in place at Wal-Mart that help to ensure that the employees are behaving in an ethical

Business Management

746 words - 3 pages executives for future advancement into executive positions. Specifically, the proposal was to send 20 employees off-site each year for a three-week program offered by the Aspen Leadership Institute of Colorado at a cost of $5,000.00 USD per student. The total cost to CHCM would be $100,000.00 per year plus approximately the same amount for lost time on the job. 2.0 Discussion CHCM has been in business for over 50 years. Our average growth rate is

Business To Business

1516 words - 7 pages , 2006). That method has since become the primary source of audience measurement information in the television industry around the globe. Measuring Ratings The Neilsen Rating system is characterized as a syndicated data provider. A syndicated data provider tracks the change of one or more measures over time, usually in a given industry (Cooper, 2006). Neilsen Rating system makes a very lucrative business for the data that is presented to the

Internaational Business Management Essay

1138 words - 5 pages HCBA 3221: International Business Management Group 1 Topic 2: International Business Research Peter Chege HD 333-1080/2015 Peninah Nyutu HD 333-1088/2015 Submitted to Dr. Oloko October 2015 INTERNATIONAL BUSINESS RESEARCH What is international Business? * Is a business where transactions occur across the borders What is research? * Research - is a process of inquiring. It is a systematic search for information

Small Business Management

1921 words - 8 pages Based on some of the issues/ challenges which you have uncovered, apply some of the ideas or concepts derived from the course Small Business Management. What would be your advice to this business owner? Write a six to eight (6-8) page report outlining your suggestion. To run a successful business, you need a various range of business management skills. When you start your business it’s likely that your

My Business Management

623 words - 3 pages My Business Management Some important questions that I as the owner ask are exactly the same issues covered in the mission statement: Who are my customers? Where are they? What do they want? When do they want it? Why should they buy it from me? How do I get it to them? This essay describes my concrete experience of running and managing a construction company. Pricing, for the Construction Company, relates to how well the project is estimated

Strategic Management & Business Policy (Starbucks)

1739 words - 7 pages Strategic Management & Business Policy Week Two Assignment: Starbucks From its humble beginning to multi-billion dollar corporation, Starbucks has had its fair share of ups and downs. Many of which can be associated with the constant changes in public demand. By utilizing the SWOT, the company was able to not only tackle each of the obstacles it in countered, it managed to strengthen organization and stay ahead of the competition. SWOT is

Ib Business - Human Resources Management

9334 words - 38 pages Methods of appraisal include upwards, essay, 360 degree, rating system, Management by Objectives (employees meeting set targets), peer, and self * Training is used to ensure candidates to be well-equipped Induction training: an introductory training programme given to all new recruits to familiarize them with systems/processes within business, organizational structure, and layout of business site On-the-job training: instruction at

Introduction To Business Etgics

430 words - 2 pages Introduction to Business Ethics * How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers? When you effectively present an issue to the CEO and other directors and the managers, I would empathize with those in management first and then I would present my facts. I would make sure that I used “I” in my statements throughout my whole presentation

Preparing To Conduct Business

1828 words - 8 pages betterment of the company as well as the people it serves. What are the key business Objectives? The question what are the key business objectives is formed from the management-research question hierarchy or management dilemma. The process is designed to move the researcher through various levels of questions, each with a specific function within the overall business research process (Cooper & Schindler, 2014). Nevertheless, in this the case

Related Essays

Business Management Essay 349 Words

349 words - 2 pages Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business management Business

Business Management Essay 3172 Words

3172 words - 13 pages . Change of our labor plan means change in how we used to manage our human resource. In terms of staffing, management of the staff and the training of staff. The main rationale of this business strategy is reducing production cost in Australia. As the business strategy is set to go off, the company has strengths and weaknesses that may end up affecting the entire strategy. The achievement of this strategy needs very skilled workforce. The high wages

Business Management Essay 639 Words

639 words - 3 pages Business Management Patricia Bonner May 15, 2011 1 A failing business is often the result of inefficiencies within the business, and poor judgment by those in charge of making these kinds of choices. This is true of any size company and whether or not the company is privately or publically held (Kramer 2007). Therefore, my plan to help stabilize and bring a failing company with a failing product line back on its feet would focus mostly on

Business Management Essay 1447 Words

1447 words - 6 pages , contract cost, monitoring costs, enforcement costs, need for transaction specific investments, administrative costs. - Portfolio management and the BCG matrix (major emphasis) Portfolio management involves a better understanding of the competitive position of an overall portfolio or family of businesses by suggesting strategic alternatives for each business, identifying priorities for the allocation of resources, using Boston Consulting