Explain Vendor Relations

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teamques10 ★ 69k

Purchase department should establish a sound relationship with vendors based on mutual trust and benefit to ensure smooth supply of materials/parts as per the quality and quantity required. So, apart from a formal commercial relationship as a customer, a long lasting and mutually rewarding relationship is to be established.
A strategic partnership between the buyer and supplier is defined as a continuing relationship involving a commitment over an extended time period, an exchange of information and acknowledgment of risks and rewards of the partnership. A sound relationship emerges from the proper help and co-ordination on the part of both buyer and supplier.
The expectations from buyers include:
- Promptness in delivery.
- Meets the quality and quantity requirements.
- Entertains occasional rush orders.
- Flexibility in quantity to be supplied.
- Can wait for the bills.
- Competitive pricing.
The expectations from the vendors:
- Consistent orders
- Prompt payment of the bills.
- Extend help during difficulty both financial and technical.
- Continuity of orders.

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