Identifying the desired supplier relationship is done during as part of evaluating and developing the sourcing approach.
The objective of this guide is to consider the most appropriate supplier relationship that will deliver maximum benefit to the government organisation.
Objective:
To consider the most appropriate supplier relationship that will deliver maximum benefit to the government organisation.
Output:
- Proposed supplier relationship type
Traditional Relationships
As a result of reactive purchasing, relationships between suppliers and their buying counterparts were reasonably cordial, but frequently adversarial.
The interaction between suppliers and buyers was often characterised by highly manipulative tactics by both parties designed
to manoeuvre the other side into a position where one’s gain would be the other’s loss.
The transformation from purchasing to strategic sourcing resulted in buyers and suppliers beginning to see benefits of more collaborative relationships,
where the outcome can result in a mutual beneficial relationship for both parties.
The nature of the identified sourcing opportunities and selected sourcing strategies will indicate the most appropriate relationship focusing the
Commodity manager’s time where it will deliver maximum benefit to the organisation.