SMF3090 Transportation Economics - Free Samples to Students

Different types of relationships in supplier relationship management

Diverse types of supplier relationship management include the following:

Arms Length supplier:

It is a simple and commonly discovered purchaser/seller transactional scheme for various named products or else services (Teller et al., 2016).  

Benefits:

This helps in contractual realization that includes little or else no interaction beyond process of communicating the necessity and realization.

Sub contractor: 

A specific supplier normally of services appointed for accomplishing tasks or else supplying a specific package of task, possibly as part of a greater project or to present the entire project (Teller et al., 2016). Instances might include construction trades on a particular building site or else software outworker.  

Benefits:

This involves communicating requirements as well as interaction as regards technical else wise specification matters.

Preferred suppliers:

This refers to supplier who essentially has a officially or else informally detected status as a one who is authorized or selected in preference of other contractors (Teller et al., 2016).

This helps in assuming a centralized control over the procurement of corporations.

Outsourced Provider:

This refers to a supplier who essentially assumes accountability to satisfy a core action and necessity or functionality of a corporation (Tseng, 2014).

Benefit:

This helps in undertaking daily interaction at functional level

Critical Supplier: 

This refers a relationship in which the supplier satisfies the necessity that is inevitable and cannot lead to swift suppliers.

Benefits:

This helps in developing good association with particular supplier; nevertheless, several corporations fail to recognize critical suppliers and place individuals at risk (Tseng, 2014).

Reference

Tseng, S. M. (2014). The impact of knowledge management capabilities and supplier relationship management on corporate performance. International Journal of Production Economics, 154, 39-47.

Teller, C., Kotzab, H., Grant, D. B., & Holweg, C. (2016). The importance of key supplier relationship management in supply chains. International Journal of Retail & Distribution Management, 44(2), 109-123.