Suppliers guaranteed relationships with

An effective relationship with a supplier that covers many areas of business will help reduce the total costs of doing business with that supplier, as well as make sure that the supplier s business is healthy and thus guarantee a supply of needed materials. Relationship-building is time spent that can pay large dividends in the future. 

The research results show that many companies concentrate on risk identification and risk assessment, and ignore risk mitigation. This is due to a reluctance to build long-term relationships with suppliers. Some companies decide to exit from cooperation rather than implement improvements. In this case cooperation means an opportunistic approach based on penalties. This does not guarantee a reduction in the number of disruptions in relationships with suppliers. 

Companies try to keep regular contacts and long term relationships with their customers. They mostly keep several preferred customers for their entire business. The businesses relationships will not be stop if there is no serious problem. Nearly all the case companies kept their longest relationships since they set up their company. Companies also showed tendency to diversify their sale markets. They try to keep rather more buyers compared to suppliers. But several important buyers are still preferred to guarantee minimum transactions. But they will never stop searching new buyers to achieve business development. 

For detail-controlled parts, which are placed next on the buyer-supplier interdependency continuum, the design and development work of the component is completely performed by the buyer. The supplier has to carry out the production of the part solely based on instructions (blueprints, etc.) given by the buyer. This type of relationship is expedient if the buyer does not want to reveal closer details of the product and its characteristics. Moreover, high design quality can be guaranteed. By contrast, dependency exists with respect to the supplier s precision in manufacturing. 

When it comes to the type of contractual relationship that is now commonplace between the supplier of the analytical service and the customer, a more formal guarantee basis is needed. The customer will not necessarily be familiar with the in-principle merits of the scientific method, but will understand a... 

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