Supplier Management

Using teams comes with no guarantee of better supply management performance compared with traditional work methods (Trent, 2007).

Information about Supplier Management

Today, the use of teams to support supply management objectives is widespread. Buyer-seller improvement teams is just one type of group. Other examples include customer advisory boards, buyer-supplier councils, executive steering committees, commodity management teams, value analysis/value engineering teams, new product teams and supplier development teams. Generally, high-performing teams should deliver results that outweigh the costs of establishing and maintaining a team and poorly designed supply chain teams can lead to catastrophic outcomes (Trent, 2007).

With time, formal relationships between buyers and sellers have become more 'strategic' and the process of relationship development has accelerated as firms strive to achieve their goals. At the same time, performance expectations have increased, making the development of a satisfactory relationship more difficult and making buyer-seller improvement teams more crucial (Wilson, 1995). Buyer-supplier improvement teams in the supply chain have become one of the most important elements of supply chain integration (Hsiao et al., 2002). External factors, which include high volatility, unpredictable market trends and environmental diversity, increase uncertainty in the global business environment. As a result, in order to deal with unexpected market demands, companies are encouraged to develop flexible relationships with multiple channel partners. This helps to reduce dependence on vendors and increase buyer insight (Ganesan, 1994).

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