Problem
Purchasing for food service operations- Ron Cichy
Chapter 5 - Buyer-Distributor Relationship
This chapter further highlights the importance and the characteristics of the relationship between buyer and distributor, as introduced in the previous chapter.
Review pages 55 to 58
Supplier Relationship Management
Read the following article, then complete the question that follows.
Supplier Relationship Management: Steps to Successful Supplier- By Sara Ireton, Assistant Vice President, JPMorgan
The relationship between a supplier and buyer can be a complex one. Each party wants to maximize its time, resources, and cash investment; these may be competing priorities that can strain the relationship. For such a partnership to succeed, it is paramount there exists a mutual business understanding underscored with respect and a sincere wish for each party to prosper. Creating this balance does not mean driving for the lowest possible price with no regard for the true expense incurred, but rather recognizing that the success of one partner helps the success of the other.
(From: Buyer Partnerships, 03 October 2007, By Sara Ireton, Assistant Vice President, JPMorgan)
Discuss the negotiation techniques that will ensure a favorable outcome for both purchaser and distributor. Use examples where necessary to illustrate your answer.