Case analysis on buyer supplier relations
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Supply Chain Analysis Case analysis during Ex MBA from IIM Kozhikode
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Case analysis on buyer supplier relations
- 1. CASE ANALYSIS ON BUYER SUPPLIER RELATIONS EPGP 07 IIM KOZHIKODE
- 2. CONCEPTUAL FRAMEWORK Buyer Buyer – supplier relationship Purchase process Supplier SUPPLY CHAIN PERFORMANCE
- 3. PURCHASE PROCESS Fair Win-Win Matching supply demand Timely Cost effective Swift negotiation Ethical Long term focus Clear and predictable
- 4. BUYER SUPPLIER RELATIONSHIP Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship
- 5. BUYER SUPPLIER RELATIONS FOR THESE FIRMS • Trustworthy /fair • Predictable Toyota • Ruthless/ cost cutting focussed • Combative with suppliers General Motors • Monopolist • Uses power base (coercion) Microsoft • Cartelization Hong kong Container Terminals
- 6. BUYER SUPPLIER RELATIONS FOR THESE FIRMS • Short term relations / Fair dealing • Localised having continuous communication Hollywood Motion Pictures Industry • Worked on cooperation and coordination • Trust was an important factorPrato Wool textile • Had faith on its supplier, build platform for information flow • Predictable standards for quality, time. Transparent ProcessesAirbus • Recaptured trust of its client by separating its businesses • Reliability of delivery and qualityACER
- 7. TOYOTA: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 8. GM: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 9. MICROSOFT: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 10. HKG CONTAINER TERMINALS: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 11. HOLLYWOOD MOTION PICTURE INDUSTRY: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 12. PRATO WOOL TEXTILES: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 13. AIRBUS: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 14. ACER: RELATIONSHIP ASSESSMENT Trustworthy Communication Transparency Co ordination Predictability Commitment to each others needs Co operation Power base Interpersonal relationship Does this well Does not do this LEGEND:
- 15. WHICH FIRM IS THE BEST FOR BUYER/SUPPLIER RELATIONSHIP Based on our analysis, TOYOTA is the frontrunner for buyer supplier relationships. Our summarized reasons listed below: Their relationship is based on mutual trust, commitment, respect for each other’s capabilities. Suppliers are considered as strategic partners. Toyota was a visionary who thought about suppliers like this. They believed in investing and developing vendors/suppliers to be able to meet their demands. They tried to be as practically predictable as possible in their demand cycles making life of suppliers better. Suppliers had to operate effectively aligned to the planned demand. Their focus is always to identify opportunity areas and improve rather than just hire and replace. Emphasis is on the continuous learning and quality of outcomes and they did not believe in terminating relationship in case of small issues Their approach to maintain Face to Face relationship with suppliers was very effective in relationship management
- 16. FUTURE OF BUYER SUPPLIER RELATIONS Future SCM and planning Increased use of Internet for info exchange Building robust relationships without face to face interaction Effective forecasting techniques, and transparency in information flow
- 17. THANK YOU Chintan Gondalia EPGP 07 – 028 Aswin Palliath EPGP 07 – 021 Ranjit Mohan EPGP 07 – 069 Parag Kaslikar EPGP 07 – 061 Alok Chaturvedi EPGP 07 – 007 Yogesh Gopalkrishana EPGP 07 – 098 Venkata Mamidanna EPGP 07 – 091 Vimal Mohan EPGP 07 – 094