Supplier Relationship Process

The nature of the service or product determines the design requirements for the upstream supply chain. The supplier relationship process, which focuses on the interaction of the firm with upstream suppliers, includes five major nested processes: (1) sourcing, (2) design collaboration, (3) negotiation, (4) buying, and (5) information exchange. For many firms, these processes are the organizational responsibility of purchasing, which is the activity that decides the suppliers to use, negotiates contracts, maintains information flows, and determines whether to buy locally.

Sourcing

The sourcing ...

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