Question

compare and contrast competitive orientation versus coopertive orientation for supplier relations

Answer 1

There are two types of relations with the suppliers to maintain with them which make affect in quality and prices of firm's goods and services.Let us discuss both of them-:

Competitive orientation-It notices discussion to reach at a price in between buyer and a seller.In this one sides win and gains while the other side loses.The buyer here make his best effort to beat supplier's price to much low as possible or make seller to agree to push demand high levels of goods and services from them during high peak time and nothing order during the time of recession, and on other hand the supplier goes to high prices as much as possible and giving all levels of customer service,volume and the winning side depends largely who gains the most.Purchasing power helps in getting who has most influence.

Cooperative Orientation-it refers when the buyer share high and much information with the supplier about its future growth and planning that how much he's willing to buy in future etc, as this also helps supplier by getting idea for the future demands.Here the buyer goes to supplier and buyers also help suppliers by helping them how to improve their operations as this make supplier to make major decision for its company in order to improve and upgrade it.There's advantage of reducing the suppliers and stick to few as it leads to reduction in managing them, but there's also disadvantage that there may be risk of interruption of supply and supplier can offer high amounts.

Both the methods cooperative and competitive have both its advantages and disadvantages but most firm serves competitive orientation than cooperative approach.