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Buyer and Supplier Relationship

Discuss the transformation of buyer-supplier relationships. What are the three levels, Transactional, Collaborative and Alliance, of buyer-seller relationships and their relative differences?

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Phase 1

Initially, the buyer seller relationship is based on the requirements of the buyer. The buyer has low purchasing time and the effort he is willing to put in is low. The purchase skills are also rudimentary. Usually, the purchase is one of an independent deal. The main focus of the buyer is on the price. The customer is open to e-purchases. Because of frequent purchases or the strategic importance of purchases there is two-way communication established. Change in the relationship occurs because the supplier is more responsive to the buyer needs (a). Clear and specific product specifications leads to an improvement (change) in relationship. Change occurs easily when purchases of non-commodity items are made. From the perspective of the buyer, changes occur to facilitate a lowering of costs, improvement of purchase process, and reduction of risks. Finally, ...

Solution Summary

Buyer and Supplier Relationship is discussed step-by-step in this solution. The response also has the sources used.