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    Supplier Relationship: Communication

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    The following question is from a discussion in my Quality Assurance course. I don't quite understand it. Can someone explain it?

    Mutually beneficial supplier relationships between an organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value for both organizations. The basic success factor in this relationship is communication. Explain why communication is so important.

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    Solution Preview

    Step 1
    Communication is so important in supplier relationships because it increases understanding. The supplier needs to understand when the organization will need supplies, where it needs supplies, the quality of supplies, and the price it will receive for its supplies. For example a supplier to Wal-Mart knows exactly the goods it has to ship, when to ship, the price it will receive, and the quality expected.

    Step 2
    Communication is also important ...

    Solution Summary

    This solution explains the importance of communication in supplier relationships. The sources used are also included in the solution.