Managing Relationships With Suppliers

Abstract

In recent years, growing market competition has made companies increasingly dependent on their suppliers, which requires effective management of their supply chains. To establish and maintain relationships with the best suppliers, companies apply strategic supplier selection, evaluation, and development criteria. The literature review showed the importance of supply chains and the use of strategic criteria in managing relationships with suppliers. Based on the model proposed by Oflac, the authors studied a local subsidiary of a global company of components for the automotive industry. Through this case study, it was possible to understand how a firm establishes strategies and performs in the practice its supply relationship management activities. Results suggest that the existence of strong and continuous relationships creates advantages for companies, allowing them to remain competitive in the markets. The strategies of selection, evaluation, and development of suppliers enable companies to filter the best partners and develop their capabilities to achieve greater profits.