Commercial relationship Harvard Case Solution & Analysis

Commercial relationship Case Solution 

Effective Supplier Relationship Management (SRM) importance

Suppliers play a vital role in establishing the relation between the manufacturers, wholesalers/distributors or vendors.They also build relation among the distributor and final customers to establish strong communication between the companies and costumers or final users of the product. Suppliers play a role of a middle man between the manufacturers to the distributors or retailers. All companies need effective suppliers to reach their products to distributors/retailers and to the final consumers.

The main purpose of the company is to fulfill the demand and supply of the products on time which could help the company in order to generate more revenue. It is expected when businesses maintain good relation with their suppliers then the suppliers will deliver their products ina timely manner to the distributors/wholesalers; it is also called a third party management system as suppliers create the relation between the businesses and the wholesalers/distributors and retailers.

 Effective supplier communication is like a backbone of every organization because without suppliers, the products or services will not be delivered to the end users of the product so that it will definitely build a negative image of the company. Many companies contact with alternate suppliers so that in difficult time or situation, the production may not slow down or stop. The competent suppliers create the value for the business by delivering the functions of competencies, effectiveness and efficient working. The suppliers’activity affects the internal environment of the organizations as well as the reputation of the company.

Good communication with suppliers is useful to reduce the internal costs in which the company can make contract with the new suppliers’ negotiation that already exist or new supplier’s contract costs. The competent supplier relation improves the product quality, availability and innovation in new products by analyzing the demand of costumers by visiting to the retailers or whole sellers.

The effective suppliers’ services are helpful for analyzing the effect of the product in the market through research channels. This research report is beneficial for the company either by improving material quality and design of the product or recommendation about the product performance. Efficient suppliers’ relation helps in reducing manufacturing by providing high quality and average cost material to the company for production.Effective supplier communication leads to the overall supply chain management in which suppliers play important role from raw material to the end users of the product.

Transport availability for particular location is the supplier’s main purpose with “just in time”performance. It means that the availability of product or material delivery is done on time.Inventory valuation of efficient suppliers is integral part of the business valuation. If the supplier is considered as a distributor then the distributor would evaluate the inventory add in or left out for the sales so that the orders of products are handle by “just in time” situation or inventory hold for next specific hour. The competent supplier’s relation is important in buyer-supplier relationship in which the supplier fulfills the buyer’s need.The buyer’s demand increases for the product and as a result,the supplier delivers the product to increase the productivity as well as the performance of the company.

The Gartner Incorporation's the most powerful business in research and Development of IT throughout the world. It delivers IT based services to the respective clients / costumers. It also leads as a middleman between the companies and clients to supply the services and increase the revenues of the company,which is about 45%. It is involved in different operations regarding IT, researches,investors’ relation and data regarding research. Moreover, the revenue of the company has increased to $ $237 Million, which means that there has been an increase of 14% from the previous year 2013 as well as the net profit has increased by 1% which is $9.6 Million.The company has improved in different operation segments including research, which has increased by 14% as compared to the previous years. Moreover, consulting has increased by 11% and event has increased by 11%. The overall scenario of effective supply relationship management is that it creates a overall positive impact on the performance of the company and profit of the company. Efficient supplier relation plays a vital role in increasing the revenue revenue as well as the profit of the company........................

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