Supplier Selection and Evaluation

Assalamualaikum.

How a lovely day today is. We hope all of you are in the pink of health. Now, our group need to continue our task today which needs to submit the blog related to the purchasing. Our topic today is about Supplier Selection and Evaluation. In this topic, I will stress more about the Pure Supply Management Relationships. However, in this subtopic, there are four relationships which are Counterproductive, Competitive, Cooperative and Collaborative.

Firstly, counterproductive relationships. Counterproductive relationships are each organization buying and supplying is so focused on getting what is best for it each puts the other at a disadvantage. We can see that in this relationship does not have a good relationship with others. This type of relationship is undesirable because it does not promote a positive feedback or service between supplying and buying firms. Neither of these companies will achieve their goal. This relationship also discourages future dealing between the organizations. This relationship make both companies lose-lose situation.

Besides, competitive relationships. It is also known as a transactional relationship. This relationship which both buying and supplying firms to strive to get the very best arrangement possible in their negotiation and fail to see the benefits of both organizations obtaining their goals and objectives. Usually, the organization who has more power between those companies will win against the weak company. It is similar what we called a parasite. In transactional relationship, the buying and supplying firms will stop at nothing to make sure that they come out on top and do not care about the other organization’s situation.

Next, cooperative relationships. This relationship recognizes the potential value of both organizations getting what they want. It is also maximize the potential of having a long term relationship. This relationship make both companies in win-win situation. This relationship also give full cooperation between them to achieve their goals. They will struggle enough to achieve their goal to be fulfil. They also will come out the best or right decision for their organization. Besides, they have a strong relationship together.

Last but not least, collaboration relationships. It is usually found with the buying firm’s strategic supplier. It is almost same with the cooperative relationship. In collaboration, the two organizations truly realize the benefit of working together. It also wants to optimize outcomes for both organizations. They also will support each other. That is why they have more to long term relationship together. The two firms work together to develop a strategy to deliver a high-quality product or service on time and also under budget.

In conclusion, there are so many type of relationships can be creating by two or more organization. This relationship is made to achieve companies goals or companies mission and vision.