16 Aug Creating and Managing Supplier RelationshipsRelational Suppl
Creating and Managing Supplier RelationshipsRelational Supplier PayoffsSome distributors continuously search out new suppliers to find better pricing and margins for their firm; whereas others believe they will add value to their firm by developing a more integrative relationship with certain key suppliers. The graph below shows the results of a comprehensive study where the integrative relational approach to treating suppliers significantly increases key performance metrics as compared to when the relationship is more transactional (i.e., less integrative) in nature. Select any two of the outcomes (e.g., supplier quality and customer satisfaction) and explain why you believe the integrative approach has produced such significant differences in performance relative to the transactional approach. In doing so, use the information discussed in the chapter and the notes to support your answer.
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