buyer seller relationship

BUYER SUPPLIER RELATIONSHIP : 

BUYER SUPPLIER RELATIONSHIP PRESENTED BY DAISON.P.J

Evolution in buyer seller relationship : 

Evolution in buyer seller relationship Traditional/Transactional relation: Collaborative relationship: Alliance type relation:

Features of transactional relationship : 

Features of transactional relationship Focus on price Lack of sharing of data and information Absence of concern Market forces fixes the price E-procurement Absence of basis for collaboration

Merits of transactional relationships : 

Merits of transactional relationships Less price and time requirement Market forces determine the price Inspectors can pass or reject the incomings Lower skill level is required for procurement people

Demerit of transactional relationship : 

Demerit of transactional relationship Minimum after sale relationship Quality is just acceptable quality level- Less flexible relations Supplier is not motivated to innovate the product Delivery problems Expensive-quality check, MIS etc Less effective performance by suppliers (transactional suppliers have less to lose from a dissatisfied buyers)

Collaborative relationship : 

Collaborative relationship Long term agreement-performance and cost Standardization, variety reduction, value engineering, value analysis Certainty and continuity of demand Controlled competition, bench marking, advanced supply management pricing practices leads to:- Lower TC, higher qlty, reduce time to market, reduce risk of supply disruption.

Factors required in a successful buyer-supplier relationship : 

Factors required in a successful buyer-supplier relationship Two-way communication Supplier’s responsiveness to supply management’s needs Clear product specification.

Supply alliance : 

Supply alliance Improved quality Reduced time to market Improved technology flows from suppliers Improved continuity of supply Lowest Total Cost

Advantages of alliance : 

Advantages of alliance Simultaneous objective of continues improvement Strong inter personal connections Improved information system Atmosphere of cooperation Ethics over expediency Negotiation occur in win-win manner

Disadvantages of alliance : 

Disadvantages of alliance ALLIANCE IS NOT SUITABLE….in case of- Instability Capability limitation Dependency Likelihood of conflict in purchasing term of contract

Changes in buyer seller relationship with time : 

Changes in buyer seller relationship with time transactional collaborative alliance time trust

for your time and attention : 

for your time and attention Thank you….