Procurement Management

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Ch 7. P8. What are the issues or questions purchasing needs to address when evaluating whether a supplier is a candidate for a longer-term relationship? There are several issues which plays a large importance in order to analyze if a supplier is a good candidate for a longer term relationship. The organization has to evaluate if there is existence of a real willingness, coming from the supplier, in order to establish a long-term relationship. Also, this particular idea supposes the involvement of resources, from the supplier, to create a steady and a win-win relationship for both parties.

The organization must to analyze what are the unique characteristics from this supplier and what are advantages that supplier is offering in an exceptional manner (opportunity cost for not being with other supplier, why this one? ). In addition, organization has to evaluate the willingness from the supplier to create joint-strategies in order to establish planning tools aiming to the future. A key point in this selection is the supplier experience in the business or related-industry. There are different issues in order to establish a successful long term relationship with any supplier.

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The above includes the most important ideas and issues which enormously determine the future of any relationship with a supplier in order to create a longer term relationship with it. Ch 8 P4. Why is it important for a buyer to be a good customer? How can a buyer become a good customer to a supplier? By establishing a relationship buyer-supplier several factors are involved during the relational activities between parties. A buyer could perform the good customer role by providing feedback to the supplier during any step of the process.

Feedback Issues such as problem resolutions, suggestions about performance, and especially results from evaluation of the supplier performance make a buyer a good customer. These elements create a better liaison and consolidate the relationship between parties. A good customer to a supplier (buyer) has a general overview of the relationship, does not just consider to supplier as a expense in its supply chain, contrarily, a good buyer treats the supplier as a key partner in its mission processes, objectives, goals, purposes and provides the best effort in order to consolidate the relationship.

A good treatment from the buyer to a supplier includes the valuation of includes “the supplier’s expertise and capabilities in logistics, engineering, cost management, research and development, and managing its own supply chain” (Monczka, Handfield, Giunipero, Patterson 278). A relevant issue from the supply chain management perspective is how to become a good costumer to a supplier. A key for success is to evaluate the expectations from the supplier? s point of view and what it is expecting from the relationship.

One big mistake as a buyer is to perceive the relationship just evaluating and analyzing the business from its perspective and to focus merely in the physical outcome, money or raw material without valuing supplier? s processes, expectations, systems, technology, equipment, and its added value to buyer? s product. Works Cited Monczka, Handfield, Giunipero,Patterson. Purchasing and Supply Chain Management. Fifth Edition. South Western Cengage. Print. 2011.


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