Essays on Buyer-Seller Association and Its Effect on the Supply Chain Management - Comm-Net Technologies Case Study

Download full paperFile format: .doc, available for editing

The paper 'Buyer-Seller Association and Its Effect on Supply Chain Management - Comm-Net Technologies " is a good example of a management case study. The buyer and supplier relationship is important in any business transaction. Consumers need to be assured that their suppliers will provide the goods and services that they require at the specified time and place. Comm-Net Technologies (CNT) is a company that has been producing software of high quality used in the telecommunication companies to test the frequency of their instruments. The company has been providing the software every 5 to 8 months after rigorous research, development, and rigorous testing of the new software.

The software provided is expensive, and customers are guaranteed of its high quality and functionality (Johnson, 2014). However, the competitors of CNT are starting to build cheaper software that can be used in frequency testing. This software though of low quality and cheap, are being taken up by the telecommunication companies which is harming business at CNT. The research that has been put in the development of the software has been copied by competitors leaving the company to start facing money problems.

The buyer-supplier relationship at CNT needs to be strengthened so that the company can be able to save itself. Buyer-supplier relation is vital for the success of the supply chain. The paper examines the buyer-supplier relationship and its effect on supply chain management. CNT and other firms in the software business compete in head to head for their share of the market. These companies are trying to stay relevant in business while maintaining their position. In such competitive scenarios, societies are often treated in an adversarial way by the buyers of the software since the relation between the purchaser and the supplier is seen as a win-lose situation (Tanskanen & Aminoff, 2015).

However, many companies have found it wise to work in close collaboration with their supplier so as to meet the requirements of their customers and to stay afloat in the competitive market The buyer-supplier relationship is changing with time. It is thus vital for the CNT Company to form alliances with some of the companies it has been supplying the software. Agreements between CNT and other software developing firms can be seen as an intercrossed governance structure that ensures the benefits of vertical integration to the business which means that both the companies are bound to take advantage of the arrangement (Marcos & Prior, 2017).

Alliances will be based on mutual trust and sharing of information between CNT and the businesses that need the software it produces.

References

List

Al-Abdallah, G.M., Abdallah, A.B. and Hamdan, K.B., 2014. The impact of supplier relationship management on competitive performance of manufacturing firms. International Journal of Business and Management,9(2), p.192.

Chiles, T.H. and McMackin, J.F., 1996. Integrating variable risk preferences, trust, and transaction cost economics. Academy of management review,21(1), pp.73-99.

Johnson, P.F., 2014. Purchasing and supply management. McGraw-Hill Higher Education.

Kumar, D. and Rahman, Z., 2016. Buyer supplier relationship and supply chain sustainability: empirical study of Indian automobile industry. Journal of Cleaner Production, 131, pp.836-848.

Lonsdale, C., 2017. ‘Self- enforcing agreement diagram’, Value Chains, Outsourcing and Procurement lecture notes, Session 6 to 8.

Lonsdale, C., 2017. ‘Value For Money diagram’, Value Chains, Outsourcing and Procurement lecture notes, Session 6 to 8.

Marcos, J. and Prior, D.D., 2017. Buyer-supplier relationship decline: A norms-based perspective. Journal of Business Research, 76, pp.14-23.

Netmba.com. 2017. Supplier-buyer connection diagram Value Chain Analysis. [online] Available at: http://www.netmba.com/strategy/value-chain/ [Accessed 7 Apr. 2017].

Schepker, D.J., Oh, W.Y., Martynov, A. and Poppo, L., 2014. The many futures of contracts: Moving beyond structure and safeguarding to coordination and adaptation. Journal of Management, 40(1), pp.193-225.

Sillanpää, I., Shahzad, K. and Sillanpää, E., 2014. Supplier development and buyer-supplier relationship strategies–a literature review. International Journal of Procurement Management, 8(1-2), pp.227-250.

Tanskanen, K. and Aminoff, A., 2015. Buyer and supplier attractiveness in a strategic relationship—A dyadic multiple-case study. Industrial Marketing Management, 50, pp.128-141.

Watson, G. and Lonsdale, C., 2003. Managing the supply base within business networks: A course reader. CBSP, Birmingham.

Williamson, O.E., 2010. Transaction cost economics: The natural progression. Journal of Retailing, 86(3), pp.215-226.

Download full paperFile format: .doc, available for editing
Contact Us