The Buyer Supplier Relationship And Logistics And Supply Chain Performance

The Buyer Supplier Relationship And Logistics And Supply Chain Performance

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To resolve these issues, many companies are trying to find tools for implementing best logistic management practices. Research has been conducted on the buyer-supplier relationships in logistics.
This research will contribute by presenting a study between Strategic buyer-supplier relationship and logistics and supply chain performance.

Buyer-supplier relationships impact on firms can be seen from both operational and strategic perspectives (Carr & Pearson, 1999; Lambert & Cooper, 2000). Operational perspective primarily emphasizes the impact on quality and service delivery, and/ or costs. While strategic perspective emphasize on sustainable continuous improvements.

In terms of buyer-supplier performance, Lemke, Goffin & Szwejczewski (2003, p. 12) highlight significant impact that suppliers have on the overall performance of organizations, not only by reducing costs, but also through product, service and process development, as well as continuously improving quality across all business levels (also see Yang et al. 2009). Additionally, Lambert & Cooper (2000) define the value of good buyer-supplier relationships not only in terms of cost, but also in terms of product and service information which adds value.

Dimensions of buyer-supplier relationships
Trust, communication, cooperation, interpersonal relationship and power-dependence are the five dimensions of buyer supplier relationship. The play an important role in high-value strategic relationships, in such relationships, it is important that the buyer and the supplier see the benefits they are gaining from the continuous relationship.
Trust can be defined as the willingness to rely on an exchange partner in whom one has confidence (Moorman et al., 1992). Fur...

... middle of paper ...

...yer supplier coordination, like managerial assistance, exchange of information of new product development and production stages.
Information technology (IT) is very important in supporting strategic and operational logistics decisions.
IT enhances logistics efficiency by providing real time information regarding inventory level, product availability, production requirements and shipment status. Moreover it helps with forecasting, information about production, markets and delivery schedules. It has been said that information technology can lead to better the relationship between strategic buyer-supplier relationships and logistics.
Companies should focus on collaboration rather than competition. Good collaboration among transportation providers, buyers and vendors helps reduce expenses. Also, an efficient and safe transportation provider is vital to business success.

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