Question

what is the role of embedded vs? arms-length ties between producers and suppliers?

Answer 1

In business sometimes a label is given to normal commercial relationships and social commercial relationships among the producers and supplier who either are independent or act independently. Embedded ties refers to the social ties while arms-length ties between suppliers and producers are non-social and purely business) ties. Embedded ties represent relationships between producers and suppliers that are overlaid with the mutual obligations and social context among them; and other hand the arm's length relationships are highly impersonal by nature.

The cooperation and dialogue in an embedded system to enhance the business performance will strengthen relations between producers and suppliers; and thus contribute in reduction of costs, enhancing the product quality, increasing productivity and leading to high efficiency rate. Moreover the data is easily available and instantly generated; thus creates and fosters a more collaborative environment. However embedded system is for a very specific task between producers and suppliers; is less secure and there is a less improvement compared to the arms-length ties.