Discuss why relationship management is so important in managing the supply chain. Provide examples of why building, and maintaining these relationships is important.
Relationship management is important in managing the supply chain because the supply chain plays a critical part in ensuring the continuity and profitability of the business. A breakdown of the supply chain can mean stoppage of the manufacturing process, increase in costs, and stock outs. Supplier relationship management provides a method of engagement with the supplier. Relationship management with the supply chain ensures that customer's requirements to the supplier are identified and managed properly. It communicates customer demand and off-take details to the customer so that overstocks and stock-outs are avoided. Relationship management with the suppliers ensures that at operational level process mapping is done so that the supplier has the details ...
The answer to this problem explains the role of relationship management in supply chain management. The references related to the answer are also included.