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  • Other Added - Implementation of the Purchase Process: Partnership or Supplier

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    Do you recognize this. You arrive at the store for a new mobile phone and just the model you had targeted is not available... It is a simple example, but stock delivery could make all the difference in you business.

    There are two main options in managing your supplies and suppliers. One in the client-supplier relationship and the other in a partnership.

    The advantage of the client-supplier relationship is that you are most flexible. You should take this construction if you are just starting with a new purchase process. Another advantage is the cost of this construction. You choose the supplier with the best cost-quality-ratio.

    Another situation in which the client-supplier relation is often preferred is for a product oriented business. Products characteristics are easy to compare and this facilitates the supplier selection.

    This is where partnerships are more profitable; for service oriented companies that are dependent on the input (service and or product) of third parties. To deliver a service you need much more commitment and knowledge in order to minimize the interface problems between both companies. Partnerships are less flexible because their return is measured on a longer-term bases. Again for developing services you need a constant in

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    ng your supplies and suppliers. One in the client-supplier relationship and the other in a partnership.

    The advantage of the client-supplier relationship is that you are most flexible. You should take this construction if you are just starting with a new purchase process. Another advantage is the cost of this construction. You choose the supplier with the best cost-quality-ratio.

    Another situation in which the client-supplier relation is often preferred is for a product oriented business. Products characteristics are easy to compare and this facilitates the supplier selection.

    This is where partnerships are more profitable; for service oriented companies that are dependent on the input (service and or product) of third parties. To deliver a service you need much more commitment and knowledge in order to minimize the interface problems between both companies. Partnerships are less flexible because their return is measured on a longer-term bases. Again for developing services you need a constant in

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    ew purchase process. Another advantage is the cost of this construction. You choose the supplier with the best cost-quality-ratio.

    Another situation in which the client-supplier relation is often preferred is for a product oriented business. Products characteristics are easy to compare and this facilitates the supplier selection.

    This is where partnerships are more profitable; for service oriented companies that are dependent on the input (service and or product) of third parties. To deliver a service you need much more commitment and knowledge in order to minimize the interface problems between both companies. Partnerships are less flexible because their return is measured on a longer-term bases. Again for developing services you need a constant in

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    characteristics are easy to compare and this facilitates the supplier selection.

    This is where partnerships are more profitable; for service oriented companies that are dependent on the input (service and or product) of third parties. To deliver a service you need much more commitment and knowledge in order to minimize the interface problems between both companies. Partnerships are less flexible because their return is measured on a longer-term bases. Again for developing services you need a constant in

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    vice you need much more commitment and knowledge in order to minimize the interface problems between both companies. Partnerships are less flexible because their return is measured on a longer-term bases. Again for developing services you need a constant interaction in which knowledge is exchanged. Changing to a new partner (supplier) when you have invested in knowledge exchange will lead to increased costs.

    In the example of the mobile phones you could choose either way, but a good fit would be the following. A partnership for the delivery part of the purchase process (where the phones get distributed to the various stores) and a client-supplier relation for each of the parties that offer the phones. So you make sure that phones are delivered on time and you are free to choose a new producer.

    © 2007 Hans Bool

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