Building Supply Chain Relationships Essay Example | Topics and Well Written Essays - 1250 words

Building Supply Chain Relationships - Essay Example The result of such relationships was simply that the suppliers tended to keep their best ideas for the companies who value the suppliers. There existed an open market for the suppliers. On the side of buyers, the buyers would go for any supplier who has an outstanding reputation in the international market or the supplier that has got the lowest bid. These kind of relationships while having a negative aspect but the companies were able to make profits. Why was it so? The reason to this is explained in the second question. On the other hand long-term relationships were those that were practiced in Toyota, Prato Wool Textile Industry, Airbus and Acer group. These relationships are based on trust, bilateral dependence and mutual friendship and are a more partnership like. There existed more face to face communication, continuous feedback, more collaboration and a high level of commitment from both sides. There is a lot of information sharing in long-term relationships which tends to enh ance the level of trust between the buyer and the supplier.