Buyer-supplier collaborations

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Commercial activity and corporate performance is based on relationships, particularly collaborations between buyers and suppliers. During a macroeconomic recession, it is critical to reassess these collaborations in terms of strategic importance, target alignment and perceived risk of opportunism to improve the operational or financial performance of both parties.

The impact of a macroeconomic recession on collaborations not only reduces overall performance but also disrupts the sustainability of existing supply chains’ competitive advantage.

Undoubtedly a macroeconomic recession can have numerous negative effects on any buyer-supplier relationship. Frequently, its impact on collaborations not only reduces overall performance but also disrupts the sustainability of existing supply chains’ competitive advantage.

In this article, we explore the buyer-supplier relationship and its strategic importance, specifically in the context of macroeconomic recession. We offer a methodology to help you undertake an assessment of your supplier relationships with a view to improving their strategic importance and your common goals.

By undertaking such an exercise, companies can improve the resilience or sustainable competitive advantage of their supply chains, following the radical changes recorded in their industries and sectors due to a macroeconomic recession.

The complete article was written by:

  • Constantine Moros
    Senior Manager, Advisory Services — Performance Improvement EY, Greece
  • Daniel Corsten
    Professor of Operations & Technology, IE Business School, Spain

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