Relationship Management (Strategic Supplier Relationships)

Author(s):  
Jesca Mhoja Nkwabi ◽  
Julia Fallon

The Tanzanian food industry is one of the most critical sectors in the country. Small and medium enterprises (SMEs) are the largest processors of food. Although SMEs mostly deal with processing food, they still face challenges, especially with their suppliers. Though previous researchers have investigated partnership issues in SMEs, little has been reported on the factors that impact the supplier relationships found in food manufacturing SMEs. This study employed a qualitative design where semi-structured interviews with 13 experts were conducted to identify the factors that impede SRM in Dar es Salaam. The findings reveal that poor relationship management, poor storage facilities, poor transportation and inadequate production capacities are the main challenges affecting SRM within these firms. To overcome these challenges, it has been recommended to improve the supplier relationships through being transparent, fostering trust and sharing quality information with the suppliers on time. Furthermore, investment in technology has been recommended to reduce costs and to enhance the information sharing between suppliers and SMEs. Government support is required with regard to financial aid and the improvement in the infrastructure to facilitate the easier flow of goods from SMEs to the customers.


2017 ◽  
Vol 3 (3) ◽  
pp. 121-136 ◽  
Author(s):  
Helen Rogers ◽  
Ray Fells

This article focuses on the negotiation of buyer–supplier relationships and the associated activities that are required to maintain them. After analysing and distilling contributions from the literature, we developed a 10-item questionnaire that was subsequently used as a guide for interviewing 36 practitioners in the field. These responses provided new insights into the attitudes and actions that contribute to relationship management success from a negotiations perspective. This led to the development of a framework that encapsulates key considerations for negotiation and relationship management specifically from a procurement process perspective.


2015 ◽  
Vol 30 (1) ◽  
pp. 45-59 ◽  
Author(s):  
Neeru Sharma ◽  
Louise C Young ◽  
Ian Wilkinson

Purpose – This paper aims to consider the nature and role of commitment in delivering value in customer–supplier relationships by developing and testing a model of relationship cooperativeness. Design/methodology/approach – Data were collected using an extended version of the Industrial Marketing and Purchasing (IMP2) Group’s instrument. Pre-qualified managers largely self-completed the survey. Model associations were tested via regression and causal path analysis. Findings – Various aspects of commitment play differing roles in relationship development. The role of commitment was less than expected; the exception is value-based commitment which is strongly associated with value creation, conflict management, trust and cooperation. Research limitations/implications – Findings provide explanations for some inconsistencies in previous findings including reported relationships between trust, cooperation and commitment. The composition of the commitment construct(s) strongly influences relationship processes. Practical implications – There are various kinds of commitment to build and multiple pathways to levering this into more effective relationships. In addition, an important part of these findings is strong indications that illustrate what the nature of ineffective commitment-building paths is likely to be. This is extremely important for managers in guiding deployment of relationship management resources and developing relationship management practice. Social implications – The regulation of close business-to-business relationships remains an important issue, and the ways in which commitment can be appropriately extended are an important part of this. Originality/value – This work focuses on the components of commitment in ways that previous work has not. The centrality of commitment in relationship value creation – beyond increased sales and revenue and predictability – is highlighted, and there is considerable extension to the understanding of the nature of this process.


The Tanzanian food industry is one of the most critical sectors in the country. Small and medium enterprises (SMEs) are the largest processors of food. Although SMEs mostly deal with processing food, they still face challenges, especially with their suppliers. Though previous researchers have investigated partnership issues in SMEs, little has been reported on the factors that impact the supplier relationships found in food manufacturing SMEs. This study employed a qualitative design where semi-structured interviews with 13 experts were conducted to identify the factors that impede SRM in Dar es Salaam. The findings reveal that poor relationship management, poor storage facilities, poor transportation and inadequate production capacities are the main challenges affecting SRM within these firms. To overcome these challenges, it has been recommended to improve the supplier relationships through being transparent, fostering trust and sharing quality information with the suppliers on time. Furthermore, investment in technology has been recommended to reduce costs and to enhance the information sharing between suppliers and SMEs. Government support is required with regard to financial aid and the improvement in the infrastructure to facilitate the easier flow of goods from SMEs to the customers.


2001 ◽  
Vol 12 (2) ◽  
pp. 57-71 ◽  
Author(s):  
Martin Hingley

In this paper, the focus is on relationship management and its implications for Small‐Medium Enterprise suppliers (SMEs). Specific insights are provided into retailer‐supplier relationships in the UK fresh produce (fruit and vegetable) market. This sector faces a process of concentration in all parts of the supply chain determined by backward vertical integration at the initiation of powerful multiple retail buyers. The author examines the nature of relationships in a generic product group from the perspective of buyers and sellers and their interaction, utilizing material from multiple depth interviews. Results concern issues of relationship formality, exclusivity, power‐dependency, relevance of organizational size, partnered growth potential and risk which lead to a number of provisional conclusions regarding the management of relationships in the supply chain


2005 ◽  
Vol 5 (1) ◽  
Author(s):  
C. R. Van Zyl

The main purpose of this article is to demonstrate how supplier relationship management (SRM) enables the capture and creation of intellectual capital, thereby attaining and sustaining a strategic competitive advantage and increasing supply chain profitability. In order to achieve this purpose, a large part of the article is devoted to exploring the relatively new and unknown field of SRM. It is shown that an organisation must possess a thorough understanding of good supplier characteristics and of the drivers, benefits and requirements for the successful implementation of SRM, in order to enable that organisation to leverage their supplier relationships to ensure the capture of supplier expertise, patents, experiences etc. (i.e. their intellectual capital). The article then explores how the integration of technology in SRM applications can improve the efficiency of supplier collaboration and intellectual capital capture and creation. It is then demonstrated how efficient and collaborative supplier relationships improve supply chain profitability and competitiveness. Lastly, the article explores the implementation pitfalls and trends of SRM that must be constantly considered and monitored by an organisation in order to continually capture and create intellectual capital and reap the full benefits of SRM. This exploration involved an examination of contemporary literature, theories and business cases and subsequently revealed that SRM is a vital discipline/philosophy that must be implemented by any organisation wishing to achieve greater supply chain efficiency and competitiveness. This competitiveness can only be achieved through the mutual unlocking, sharing and leveraging of intellectual capital.


2004 ◽  
Vol 4 (1) ◽  
pp. 7-24 ◽  
Author(s):  
Danny Claro ◽  
D. Zylbersztajn ◽  
S. (Onno) Omta

Recently, scholars have suggested that to understand fully the nature of a dyadic relationship, greater attention must be directed to the network context. In this study we drew on emerging perspectives on inter-firm governance and networks to develop a theoretical framework to understand the successful governance of long-term buyer-supplier relationships. In order to test the research framework, we conducted a survey among 174 merchant distributors (buyers) and 67 growers (suppliers) in the Dutch potted plant and flower industry. In the estimated models, we found several positive impacts of the information obtained from the business network on the dimensions of relationship management, and ultimately performance, both in terms of operations as well as finance. The results of this study support our rationale that the business network compensates for the information asymmetry assumed in transaction cost economics. Although there are several similarities in our findings, buyers and suppliers use clearly different information strategies to achieve success. While the most successful distributors tend to take the 'hard', tangible approach using transaction-specific investments and fostering joint action, the successful growers take the 'soft', social approach by putting emphasis on norms of flexibility in the relationship. Managers may use these findings to check the adequacy of their business networks and their approach to relationship management.


2015 ◽  
Vol 20 (2) ◽  
pp. 151-162 ◽  
Author(s):  
Anni-Kaisa Kähkönen ◽  
Katrina Lintukangas ◽  
Jukka Hallikas

Purpose – The purpose of this paper is to examine what kind of supplier relationship management activities can be seen as value-creating activities and how those might affect the buyer’s dependence on its suppliers. Power and dependence provide specific insights into the supplier relationship management and value creation in supply chains. Design/methodology/approach – The study utilizes a survey data with 165 cases collected in Finland. The concepts are tested by means of regression analysis. Findings – The findings of the study indicate that the value-creating activities of inter-firm learning and early supplier involvement increase buyer’s dependence, but a supplier orientation does not have similar effects. Practical implications – The results have implications for supply chain managers and practitioners in terms of shedding light on the approaches of dependence and value creation at the same time. Managers need to understand the factors that create dependence, but which also have a substantial influence on value creation in supply chains and networks. Originality/value – The literature review reveals that the supply chain situations in which the supplier is strategically important and its role in the value-creation process is significant, and when the buyer is dependent on the supplier, have rarely been discussed. Moreover, by focusing on the supplier relationship management activities that can be seen as value-creating activities and by combining this to the dependence perspective, this study aims to narrow the research gap identified from the previous research.


1996 ◽  
Vol 33 (4) ◽  
pp. 431-441 ◽  
Author(s):  
Rodney L. Stump ◽  
Jan B. Heide

The recent marketing literature reflects a growing interest in relationship management issues. In particular, several recent studies have drawn on transaction cost and agency theory to examine how interfirm relationships are organized. The general premise is that explicit control mechanisms must be deployed in a relationship to manage a partner's potential opportunism. Although previous research has shown that different mechanisms can be used, the tendency has been to examine individual mechanisms in isolation. The authors develop hypotheses about interdependences between different control mechanisms. They also identify some of the contextual factors that influence their use. The framework is tested empirically by examining how chemical manufacturers organize their supplier relationships. The results generally support the hypothesis that firms’ choices among control mechanisms are influenced by contextual factors. Only limited support is found for the hypothesis that interdependencies exist between different mechanisms.


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