Topic: Supplier Relationship Management Issue: Supplier Disputes Research question: How procurement can prevent future supplier through supplier relationship management Assessment task 1: Journal...

Research Topic: Supplier Disputes
Research question: How procurement can prevent future supplier through supplier relationship management
Introduction
In this era of intense market competition, supply chains are viewed as important links, which connect a corporation’s inputs to the results and outputs (Handfield and Nichols, 2009). From a traditional perspective, some of the common supply chain and supplier challenges include lowering operational costs, focusing on Just-In-Time (JIT) deliver, settling down supplier disputes and minimising risks in order to effectively address organisational objectives (Jiangb, 2009). However, constantly rising market needs, natural calamities and consumer demand for eco-friendly products has forced several firms to invest in developing sustainable supply chains and supplier relationships. Since last few years, sustainability has emerged as an evolving concept linked to a continuous increment in the global business su
ounding. According to Chen and Paulraj (2004), every single day, leadership and senior management across various organisations struggle determining the impact of their company’s operations on society, natural resources and environment in general. The biggest challenge lies in guarantying sustainable operations, sound supplier relationship and supply chain cycle (Liker and Choi, 2004). The strategic aim is to reduce ecological footprint as well as enhance resource productivity and efficiency.
To succeed in rapidly changing economic conditions companies operating in different sectors are su
ounded by critical factors such as economic downturn and supplier disputes, it is extremely important to pro-actively identify the issues faced by the suppliers and the actual reasons resulting in such disputes among them (Jiangb, 2009). Similarly, the supplier disputes could have a significant impact on the company’s global supply too. Such kind of issues can affect the companies during design, manufacturing, distribution and even, retail stage (Chen and Paulraj, 2004). The key challenges that stand in front of the company’s supply chain is ensuring effective supplier relationships, which could be attained by adopting the approach of Supplier Relationship Management (SRM).
The significance of the ‘upstream’ outlook of the supply chain has progressed immensely during the latest years (Michie, 2011). Such progress is directed through forces like the trend toward concentrating upon key ailities, the efforts for making management leaner more active and the augmenting degree of supplier engagement within the innovation procedures of the company. Managing domestic as well as worldwide suppliers is considered as being the highly powerful strategic lever the companies could use for reducing cost and competing more efficiently on price (Jiangb, 2009). This particular statement highlights the reason why SRM has gained high interest for both management as well as researchers in procurement presently. Likewise, diverse electronic commerce applications are being adopted for extreme range of purposes. Several applications are establishing as being effective ‘downstream’ within the supply network (Fredendall, 2001). Ensuring that the most appropriate prices through strategic sourcing is no more regarded as a strategic capability of any procurement task. As a result, because of outsourcing of non-core capabilities, the companies are beginning to understand that it has turn out to be highly dependent upon suppliers with respect to innovative power, supply safety, CSR (corporate social responsibility) as well as continuing cost cuts (Liker and Choi, 2004). Strategic partnerships are seen as being the top preference of the corporate agenda and SRM is considered as one among the few procurement topics, which could even now make a big difference.
Moving ahead, it has been highly observed that procurement can greatly affect Supplier relationships at companies. Effective procurement requires company to ensure that the following factors are satisfied.
· Effective Communication
Sound, two-way communication is considered as being a fundamental aspect of any sound business relationship. In case if the company does not frequently talks with its suppliers, it could not learn sufficient regarding them for building mutually advantageous a
angements (Liker and Choi, 2004).
· Respect
A mutual gratitude as well as willingness for considering the opinions and needs of the other groups could clear down the course for buyers and suppliers, to function in manner that maximise both parties interests (Jiangb, 2009).
· Openness
A vital fraction of sound relationship development is being honest and open with each other. Sharing information about the procurement activities and being transparent regarding the set objectives could again help the business in increasing the chances of forming agreements that benefit everybody...