Below are details of five companies who all have different types of relationships with their suppliers. For each company, select the corresponding relationship type and the main relationship- influencing KPI monitored by the company.
Company 1: The relationship is characterised by high levels of conflict, but is one in which there is mutual respect for each other’s ideas and innovative solutions are often formed from the conflict. This KPI is measured by the level of information sharing between the buyer and supplier and the level of reliability of both parties.
Company 2: There is a low level of co-operation between Company 2 and its main supplier. The contract is not expected to last much longer due to conflicts that cannot be resolved amicably. There is a low level of dependency on the supplier and a number of alternative providers in the marketplace.
Company 3: The relationship is characterised by a win-win approach and both parties consider themselves equal. The relationship is measured based on its openness, honesty and levels of information sharing, particularly in the disclosure of sensitive information.
Company 4: Company 4 works well with their supplier and there is little conflict. The relationship is important due to the high value of the contract and the two parties work together to meet the same goals. The KPI measures the exchanges and levels of collaboration between the parties.
Company 5: The supplier does not place much importance on the relationship with Company 5 due to the low value of the contract. Company 5 is worried that the supplier is not willing to invest in the contract and therefore are measuring the loyalty of the supplier as a KPI.
Complete the table below with the correct relationship type and relationship influencing KPI: nice, creative, marginal, hostile, partnership arm’s length, power, trust, co-operation, communication, commitment, transparency.
Which of the following will you put into box 10?
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