Types of Supplier Relationships

This assignment examines various types of supplier relationship management, including Arms Length, Subcontractor, Preferred Suppliers, Outsourced Provider, and Critical Supplier. It delves into the benefits and characteristics of each type, illustrating how different relationships impact businesses. The assignment provides insights into strategic procurement practices and the importance of fostering strong supplier connections.

Running head: TRANSPORTATION ECONOMICS
Transportation Economics
University Name
Student Name
Authors’ Note

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TRANSPORTATION ECONOMICS
Different types of relationships in supplier relationship management
Diverse types of supplier relationship management include the following:
Arms Length supplier:
It is a simple and commonly discovered purchaser/seller transactional scheme for
various named products or else services (Teller et al., 2016).
Benefits:
This helps in contractual realization that includes little or else no interaction beyond
process of communicating the necessity and realization.
Sub contractor:
A specific supplier normally of services appointed for accomplishing tasks or else
supplying a specific package of task, possibly as part of a greater project or to present the
entire project (Teller et al., 2016). Instances might include construction trades on a particular
building site or else software outworker.
Benefits:
This involves communicating requirements as well as interaction as regards technical
else wise specification matters.
Preferred suppliers:
This refers to supplier who essentially has a officially or else informally detected
status as a one who is authorized or selected in preference of other contractors (Teller et al.,
2016).

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TRANSPORTATION ECONOMICS
Benefits:
This helps in assuming a centralized control over the procurement of corporations.
Outsourced Provider:
This refers to a supplier who essentially assumes accountability to satisfy a core
action and necessity or functionality of a corporation (Tseng, 2014).
Benefit:
This helps in undertaking daily interaction at functional level
Critical Supplier:
This refers a relationship in which the supplier satisfies the necessity that is inevitable
and cannot lead to swift suppliers.
Benefits:
This helps in developing good association with particular supplier; nevertheless,
several corporations fail to recognize critical suppliers and place individuals at risk (Tseng,
2014).

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TRANSPORTATION ECONOMICS
Reference
Tseng, S. M. (2014). The impact of knowledge management capabilities and supplier
relationship management on corporate performance. International Journal of Production
Economics, 154, 39-47.
Teller, C., Kotzab, H., Grant, D. B., & Holweg, C. (2016). The importance of key supplier
relationship management in supply chains. International Journal of Retail & Distribution
Management, 44(2), 109-123.