Buyer supplier relationship

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Buyer supplier relationship

  1. 1.  Trust Quality Commitment Satisfaction Innovation & Development Information Exchange Interdependence Social support, and finally Cost reduction
  2. 2.  Toyota – Corporation General Motors – Armed length negotiations with primary aim to reduce costs Microsoft – Hegemony & monopoly Hong kong container terminal – Market coverage by reducing the prices Hollywood motion picture industry – Short term commitment & contracts based on individual projects Prato wool textile industry – Maintain coordination with the suppliers to maintain design creativity & market trend Airbus – Outsourcing in multiple partners Acer – Conflict of interest
  3. 3. • Toyota Supplier Support centre (for suppliers to learn core concepts of Toyota production)• Supplier Association in 1943 (to enhance mutual friendship & exchange information)• Most suppliers were situated at a radius of 35 miles from Toyota technical centre• Main pre-requisites – Quality, Reliability & commitment to cost reduction
  4. 4.  Increased Emphasis on SCM to Optimize operations Increased dependability on online transactions, purchases and sales Outsourcing in Manufacturing and Service sectors Focus on true supply chain partners instead of diversified and large no. of SCPs in an integrated supply chain Lower costs as a result of online transactions, e.g. Online Auctions
  5. 5.  Increase use of SCM Increase use of online communication in purchasing Increase outsourcing in manufacturing & servicing factors Profit/ quality pressures on companies Desired to minimize inventory Increase globalization & competition Globalisation and foreign outsourcing responsible for profit pressure. Profit and sustainability pressure casing companies to rethink over the Buyer- Supplier Relationships.

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