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Saturday, 14 June 2014

What is the importance of Buyer-Supplier relationship in terms of customer satisfaction?

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Almost every company purchases products, supplies, or services in an amount that frequently equals around 50% of its sales.                                    

Traditionally many of companies follow “lowest bidder” practices where price is critical criterion. Now companies are realizing that careful concentration of purchases, together with long term buyer-supplier relationship, will reduce costs and improve profits. Dr. Deming suggested that a long-term relationship between purchasers and suppliers is necessary for best economy                                                                     Several guideline will help both the supplier and customer benefit from a long-term partnering relationship:

 •Implementation of TQM by both supplier and customer. •Long-term commitment to TQM and to the partnering relationship between the parties.•Reduction is supplier base. •Get suppliers involved in the early stages of research, development, and design. •Benchmarking

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