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article analysis - Assignment Example

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Family & Consumer Science
Pages 5 (1255 words)


Date Submitted Establishing the Right Relationship between Companies and Suppliers 1. Introduction This paper explores the importance of establishing a solid relationship between companies and their suppliers…

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In both scenarios, the business success for both companies and suppliers will depend on the depth and strength of their relationship. This paper starts with an explanation of the common mistakes companies commit in dealing with their suppliers. Several factors that companies should consider before getting a supplier or outsourcing a business process will follow. Different types of supplier relationships are then explored. The paper ends with a discussion of properly managing supplier relationships. 2. Mistakes to avoid in supplier relationships The first mistake that companies commit even before entering into supplier relationships is the lack of organizational/business process analysis. Companies often enter into supplier relationships without first knowing what the company really needs. These “unevaluated processes” blind a company from the areas where it excels and areas where it needs improvement (Aron and Singh 136). A company, then, might mistakenly outsource core processes which are vital to its functioning, or manufacture in-house those components which can be sourced from suppliers at lower costs with same quality, for instance. Another mistake companies make involves getting into supplier relationships for the wrong reasons. ...
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