Supplier Relationship

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Supplier Relationship

  1. 1. Presentation on SUPPLIER RELATIONSHIP<br />Submitted by:-<br />Nitika A-12<br />ShwetNisha A-14<br />Gourav B-48<br />Anup Kumar B-59<br />AbhishekArora B-61<br />Kshitij Kumar B-65<br />
  2. 2. Introduction<br />Started by online travel agencies which provides Cheap Flight Tickets, Hotels and Travelling Cars.<br />Got started without the best relations with its suppliers.<br />Barry Diller- Chairman of Expedia.com<br />Paul Brown- President of Expedia North America<br />
  3. 3. Relationship with Suppliers<br />Dreadful Relationship with Suppliers.<br />“Hotel Companies didn’t pay higher margins so wouldn’t get equal treatment on the site itself”, says Brown.<br />This left only “Extremely Strained Suppliers Relationship”. <br />
  4. 4. Schizoid Brands<br />Different brands in different regions in 15 different group worked externally with suppliers.<br />Several Suppliers threatened to <br />quit.<br />At the same time investors were <br /> paying extra attention to the supplier’s <br />woes.<br />
  5. 5. Idea of making new central “Partner Services Group”.<br />Brown meets Country Heads, Account Managers and Hotel Representatives to set up a standard system in Company.<br />Advantageous Overview<br />
  6. 6. 3 years later, Supplier relationship have developed.<br />11,000 new merchant hotels added to Expedia inventory.<br />Brown says ,“That would happen if we didn’t have the right types of relationships with our suppliers”<br />Contd…<br />
  7. 7. Expedia used empathy to think about its relationships with suppliers .<br />Used Service-level agreement and contracts with Hotel chains.<br />Expedia think it is highly important to have long–term relationship with your business-to-business partners.<br />Empathy Relationship<br />
  8. 8. Naming “Partner Services Group” instead of Suppliers group and give up some profit and loss transparency.<br />Expedia communicated a philosophy of how it wanted to work with its suppliers.<br />Importance of Name<br />
  9. 9. This change of name shows how much care Expedia have to its suppliers.<br />Contd…<br />
  10. 10. Create real innovations with suppliers and treat them as a partner and treat them empathetically.<br />This behavior change go beyond operational improvements and willing them to embrace the fact that they are partners.<br />Conclusion <br />

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