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Essay / Research Paper Abstract
This 8 page paper looks at the different types of relationship that can exist between buyers and suppliers considering co-operative and adversarial approaches with examples. There is then a discussion on the best approach and the way the relationships may be seen to develop in the future.
Page Count:
8 pages (~225 words per page)
File: TS14_TEbuyrelt.rtf
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Unformatted sample text from the term paper:
increased costs and difficulties, whereas the right approach to the buyer supplier relationship can add value to the company and the supply chain. By looking at the different characteristics of
different types of buyer-supplier relationships it may be determined how do they differ from each other; this can also lead us to look at what the best approach may be.
This all considers the current situation, but these relationships will also change over time, once the best current approach is considered it is also important to look to the future
to consider what may occur in buyer supplier relationship in years to come. 2. Buyer Relationships There are different models of buyer supplier relationships. They may be broadly categorized
into two groups, the co-operative models and the adversarial models with some variation on these. We will look at the co-operative models first. Toyota is often held up as a
good example of co-operative supply chain management where there is a very efficient chain resulting form close relationship with the suppliers. There are a number of models that this encompasses.
The first may be seen as resulting from a keiretsu model. Keiretsu may operating horizontally, other vertically, such as Toyota which belongs to the Mitsui Group, it is this vertical
aspect that helps with the supply chain. The main aim of the keiretsu is to promote growth and success for the entire group. This is undertaken in terms of polices
adopted and backed up by emotional involvement. There is an interest in sharing the risks of business and this is shared in terms of a symbiotic relationships. The idea is
sound, but due to the way companies operate, with asymmetries of power, market share and economic, there is also an uneven spread of risk. In effect there is a great
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