Two modes of supplier management

In the relationship between suppliers and manufacturers, there are two typical models: traditional competitive relationship and cooperative relationship, or win-win relationship. The purchase characteristics of the two relationship models are different. This is price-driven. The purchasing strategy of this relationship is as follows:

(1) The buyer purchases from several suppliers at the same time, and obtains price benefits through competition among suppliers, while ensuring the continuity of supply;

(2) The buyer controls the suppliers by distributing the purchase quantity among the suppliers;

(3) The buyer and the supplier maintain a short-term contractual relationship. It is a cooperative relationship, which was first adopted by Japanese enterprises. It emphasizes the sharing of information between cooperative suppliers and manufacturers, and the coordination of mutual behavior through cooperation and consultation.

(1) Manufacturers help suppliers to reduce costs, improve quality and speed up product development;

(2) Improve efficiency and reduce transaction/management costs by establishing mutual trust;

(3) Long-term trust cooperation replaces short-term contracts;

(4) More information exchange.

The JIT procurement mode introduced earlier is cooperative relationship mode, and the concentrated expression of supply chain management thought is cooperation and coordination. Therefore, it is very important to establish a win-win cooperative relationship for the implementation of JIT procurement.