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Business to Business Relationship Management

In: Business and Management

Submitted By jcarver212
Words 1738
Pages 7
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 relationship is critical to the success of most companies. Most manufacturing organizations spend over 50% of their revenue on supply chain. Considering the fact that customers are more price sensitive than ever, companies have to squeeze out potential profit margins from their supply chain investment. Manufacturers are also becoming increasing dependent on their suppliers; this has led to a general increase in level of collaboration between buyers and supplier. In fact, having the right source of supply can actually be a source of competitive advantage especially when both parties are bonded by an exclusive contract.
For example, Dell computer was the first computer manufacturer to recognize the potential benefits of a collaborative supply chain relationship. Dell was so confident that building a strong supplier relationship with its suppliers can really set them apart in the computer industry that was rapidly growing; they decided to build their whole business strategy around it. Using the build to order manufacturing and just in time (JIT) inventory method to supply components needed, customers can actually build their own customized laptop or computer for a reasonably affordable...

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