Buyer supplier relationship
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Transcript of Buyer supplier relationship
Trust Quality Commitment Satisfaction Innovation & Development Information Exchange Interdependence Social support, and finally Cost reduction
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
• 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
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
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.