Supplier-Buyer Relationship in Indian Manufacturing Environment

Every node or link of supply chain consists of one supplier and one buyer. At each node supplier-buyer relation exists. The relationships are the foundation on which an effective supply chain can be built. A closer and stronger relationship allows the channel members to achieve quality improvements, cost reductions and revenue growth as well as provide capability to deal with demand and supply uncertainties. In a supply chain, relationships are not only used for connecting the firm with a partner, but also used to connect the firm throughout the supply chain. Strategic procurement management and supplier-buyer relationship has been propagated as an effective and useful business strategic approach. It is also essential that manufacturing industries need to constantly change in order to respond to consumer preferences. The strategic value and content of flexibility has been identified but the concept of flexibility itself is not well understood especially in supplier-buyer relationships and supply chains. Unfortunately, a single all-encompassing identification of flexibility has yet to develop in Indian manufacturing firms.