Good supplier relationship management contributes to between 30 – 70 per cent of a company ’ s gross profit
Finally , it is worth noting that companies do not need to build great
relationships with all their suppliers . Our advice is that firms should
concentrate their attention on those suppliers whose role is critical
to their own success . However , others , even those suppliers with
whom dealings are transactional , should be treated in a trusting
manner . The bottom line is that any company that wants to improve
its profitability would be well advised to put effort into working with
its suppliers in a manner that is commensurate with the supplier ’ s
importance .
Dr Henke is president of consultancy Planning Perspectives , Inc , a
professor of marketing in the School of Business Administration at
Oakland University in Rochester , Michigan , and a research fellow at
the Center for Supply Chain Management , Rutgers University , New
Brunswick , New Jersey .
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