Presentation Transcript
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….