Every company, be it small organizations or the bigger ones, everyone has a different way of managing their suppliers. The management of suppliers differs from one company to another. If we break down the entire chain to its most basic level, suppliers are considered to be transactional. It is somewhat of a textbook procedure, where companies hunt for and find their suppliers, there is negotiation, purchase orders and then the supply of goods.
So if we look at it, there is almost no or very little effort put into building a relationship with the supplier. Suppliers lack a fundamental respect and value in the chain. The supplier relationship is reserved only for the strategic suppliers, who are the best of the best.
Since the strategic supplier contributes in huge amounts to the customer, the customers too maintain the integrity of the relationship. This brings in a certain level of collaboration, communication, synchronization and mutual strategic development, one that is beneficial to both the parties involved.
This makes for an entire process where any supplier can go up to the level of being a strategic supplier, given, the relationship is maintained. Because when a business is partly dependent on supply chain and the suppliers, there are chances that the supplier could go any which way. If the relationship is maintained, the supplier may go upscale and contribute in the growth, and if not, he may also go downhill and with it collapse an entire chain on which the business relies.
These are some of the reasons why there is a dire need to have a strategic supplier relationship. And one can only benefit from it!
