Answer to Question #187483 in Management for Karabo Maluleke

Question

(B) As a procurement manager of a fast-food company, you are expected to enter into a contractual agreement with three different suppliers. Honey limited proposes to supply you with goods that are essential in the production. The other two are suppliers of the following:

Austin corporation is a supplier of products such as office furniture (such as tables, chairs blackboard etc.); and Pentel is a supplier of electronic appliances such as laptops, desktop etc.

• Also, aside from providing a valid reason to justify your selection of the suitable relationship as indicated above, you are expected to give sufficient reasons why the other relationships are not appropriate (hence you have chosen the particular relationship as suitable one). In other words, give me reasons to refute or reject the other relationship. (5 marks per selection). (30 marks)

Answer 1

Customer Supplier Relationship is the business relation between the customers and the suppliers in terms of product quality, services, complaint handling, deliveries etc. Customers and Suppliers are the vital cogs in business. Both have the same goal- to satisfy end consumers.

The key advantage of strong, healthy supplier relationships is that you can gain better value for your business. The better you know your suppliers, and the better they know you, the more likely you are to benefit from dedicated service, preferential pricing and special terms.

Building Strong Vendor Relationships

1. Communicate. The first step to nurturing an effective business relationship is by establishing and maintaining a connection. ...
2. Pay Promptly. ...
3. Provide Lead Time. ...
4. Refer Your Vendor to Colleagues. ...
5. Always Under Promise and Over Deliver. ...
6. Understand the Power of No. ...
7. Ask for Referrals.