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approach should be to advance the relationship as much as possible. There are many opportunities for this because the buyer and supplier can spend increased amounts of time together.
For example, a sole source situation provides an opportunity for the buyer to seek a solution based upon real insight from the supplier - not an "off-the-shelf" solution. These customized solutions demand mutual transparency and information exchange between the buyer and supplier. Through these interactions, the relationship grows with the buyer gaining more trust in the single supplier and seeking that supplier's insights. These create opportunities for a stronger relationship than what is possible in a multi-supplier approach.
Additionally, the approach to negotiations provides an opportunity to lay the foundation for an enduring relationship. The parties should adopt a solution philosophy that builds a relationship between supplier and buyer, versus a bid process that tends to agitate differences. Using an "interest-based" approach to negotiating helps focus the relationship on the most important principles and identify common interests, which increases the chance that the relationship will endure over time. The ability of a buyer and supplier to work more closely together in a sole source approach often better facilitates this process than would a multi-supplier outsourcing approach.
2. Engage senior leadership. Senior executives from both buyer and supplier must v
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