Value of supplier partnerships
The concept of a supplier partnership ensures the promotion of business undertakings within such frameworks. Today, they business arena operates in a highly networked economy, and therefore only a few companies perform anything on their own. Scaling such partners has ensured that there is smooth operation, so the general functions of the company and thus greater productivity since the partners are useful in making the company to provide better services or/and products (Shin and Lee, 2013). For example, Dell Limited has maintained its build-to-order business model only because of its fundamental partners.
A well-structured suppliers’ partnership have always proved to give suppliers succinct and highly informed visibility into the way they operate (Seuring, 2013). This hugely contributes to the growth of the company as it enables the company and its suppliers’ partners to collaborate in a manner that would be reduction of cost, increased innovation, and improvement in quality and service.
When the company increases the number of activities that are outsourced, then, there will a huge increase in the dependency levels of these particular suppliers. The company needs to have trusted partner who ensures that the company attains greater height in quality of performance.
Moreover, the company achieves an expanded research and market development capabilities. The different suppliers put lots of investment in R&D so that they can stay on top of the market and perform excellently. The cost of such undertaking is the spread to different clients. This investment ensures that the companies keep up with the growth and the rapidly changing technology or advancement in market practices (Ross, 2013).
Plan for sustaining log-term supplier relations
The relationship between different suppliers and the buyer they deal with can present complex undertakings from a number of ways. This is because every partner privy to this arrangement would always want to maximize on their time, cash investment, and resources –in which these can be priorities, which compete from either end and could result in straining the company. Therefore, a strategic plan to sustain long-term supplier relationships is an inevitable business undertaking.
First, the partners need to ascertain the compliance levels of the various partners they engage in their business undertakings (Lambert, Cooper, and Pagh, 2011). This is because a number of governments across the globe have listed several parties with whom an individual should never conduct any business with. When a party engages in partnership with the other entities it should, therefore, ensure that it exhaustively scrutinize the supply chain and have gathered the information that the party it is about to do business with is approved and does not experience in any way.
The second aspect that ensures sustaining a long-term suppliers’ relationship is conducted. A partner should ensure that the other partner hold ethical labor standards as failure to uphold such standards would severely impacts on the brands and image of that particular entity. This gives emphasis on knowing and trusting the suppliers. The move to uphold high standards of corporate social responsibility by companies has made them be cognizant its significance and therefore be able to keep a long-term business relation.
Requests for proposals
The requests for proposals and the quotes are the initial processes in creating the contract documents. These entails document clauses and associate agreements, which provide for the policy or legal or any other terms of the agreement to guide the individuals in the partnership.
Transactional purchase orders
The purchase orders enable an organization to create and maintain contracts which are categorized purchase orders to be an alternative for of the transactional contract. Those purchase orders which were updated or added prior to the process of implementing Supplier Contract Management are then enabled in order to authorize the supplier contract.
Ethical code of conduct
The contract will adhere to an ethical code of conduct of:
Integrity
This entails being honest to terms of the contract, for instance, by meeting the ethical standards as stipulated to guide the process of undertaking the contract. The parties to the contract will keep their words by just doing exactly how they agreed. Additionally, the parties would accept responsibility and hold themselves accountable for their actions.
Appropriate contracting instruments
In the case of an outsourcing contract, there should be detailing of particular information on risks aspects and the possible ways to minimize them. The rationale behind this is that when undertaking an outsourcing contract, there should be a succinct analysis of the facts surrounding the scenario and every impact of such an action on the performance of the organization and its stakeholders.
Secondly, a contractual instrument on third-party certification is an inevitable tool in the evaluation and guaranteeing the competencies of individuals and contractors in consideration of the environmental concerns and other aspects (Zetzel, 2013.).
Risk Analysis
The risk analysis process of ensuring sustenance of long-term supplier partnerships and achieving value from such partnerships would encompass identification of the possible risks that a party to such arrangements would face and ensure putting appropriate mitigation measures (Shin, and Lee, 2013). On the other hand, the risk analysis of the impact of technology on the contact would encompass the possible changes that would be in the contract due technological advancements.
Assumptions/Choices
The dynamism in the business arena within different industries is a critical aspect of engaging in supplier partnerships and maintaining such agreements (Sheffi, 2001.). The business environment changes day-by-day as there are technological advancements in the way a number of business are done in the modern world. Therefore, embracing such changes is a critical step for businesses striving to achieve high levels of performance in this competitive environment.
Bibliography
Lambert, D.M., Cooper, M.C. and Pagh, J.D., 2011. Supply chain management: implementation issues and research opportunities. The international journal of logistics management, 9(2), pp.1-20.
Ross, D.F., 2013. Competing through supply chain management: creating market-winning strategies through supply chain partnerships. Springer Science & Business Media.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), pp.1513-1520.v
Sheffi, Y., 2001. Supply chain management under the threat of international terrorism. The International Journal of logistics management, 12(2), pp.1-11.
Shin, W. and Lee, W., 2013. Legality of R&D subsidies and its policy framework under the world trading system: The case of civil aircraft disputes. STI Policy Review, 4.
Zetzel, J.E., 2013. A Contract on Ameria: Law and Legality in Cicero's Pro Roscio Amerino. American Journal of Philology, 134(3), pp.425-444.
