Frequent interactions and close relationships with suppliers can have a positive effect on the exchange and flow of information and knowledge, and thus can improve processes and performance (BBS, CIPS and Oracle: I-RELATE)
Frequent interactions and close relationships with suppliers can have a positive effect on the exchange and flow of information and knowledge, thus improving processes and performance (BBS, CIPS and Oracle: I-RELATE) and leading to substantial rewards (Cousins et al., 2008).
In the late 1980s academics and practitioners began exploring the foundations of success of Japanese companies. They found that managers in Japanese companies treated suppliers as a valuable resource essential for their companies' success. Hence, a lot of efforts were made to sustain good relationships with suppliers. At the time this approach differed from that taken by Western companies who treated relationships with their suppliers as 'additional' to the main procurement management role (Cousins et al., 2008). Since the 1990s European and American companies have been paying more attention to relationship management in procurement. Recent trends, such as the growing complexity of technologies, global competition, and the need to search for competitive advantage are requiring even more collaborative relationships with suppliers. In many cases this means increasingly involving the suppliers and at early stages of product development (BBS, CIPS and Oracle: I-RELATE).
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Reducing an organisation’s supplier base is often a key aim of any procurement professional in a new role. It is always assumed ... that aggregation is right and...
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