Is corporate infidelity with suppliers born of selfishness, impulsiveness and ambition?
Posted: Thu Jan 30, 2025 5:14 am
Corporate infidelity, yes, today ON Digital explains how this can affect your relationship with suppliers. A company is willing to change a client-supplier relationship in exchange for savings. This may not seem like a bad strategy at first, but in the long run it has far more far-reaching consequences than simply lowering the costs of a product.
It is highly related to corporate values, professional motivation and the real possibility of promotion. This is why trends indicate that the relationship between suppliers and customers is more focused on relationship marketing than transaction marketing.
To establish a good relationship with suppliers, they must provide you with:
● Good items and services.
● The right price.
● Meet delivery times.
● Resolve disputes with ease.
However, there must also be customer-supplier trust. In this singapore whatsapp data regard, trust can be defined as the willingness to depend on the same partner in a series of businesses. This relationship will result in reducing uncertainty at the time of exchanges, reducing the risk that an organization faces when investing large sums of money and, under any circumstances, there will be a belief that neither party will take advantage of the situation. Often, the customer-supplier dependency shares the same corporate values, which facilitates the bond of solidarity between both companies.
There is research that claims that “customer-supplier loyalty may depend on the sector of both companies, the aggressiveness of the competition they face, barriers to change or risk aversion.” Anderson and Mittal, 2000; Jones and Sasser, 1995.
Customer-supplier relationship
Changing suppliers?
Changing suppliers is an important decision, since it means breaking the bonds of trust already established. It also means breaking ties with a company that only undertakes actions that will be positive for the company, reducing the chances of receiving an opportunistic attitude from the company. It also means leaving aside the cooperation and coordination that evolves over time.
Know your suppliers
When selecting and negotiating with a supplier, several factors are taken into consideration. It is essential to evaluate the weight of each of these factors, but it will depend on the priorities and strategies of the company. In addition, it is essential to have a thorough understanding of how the supplier works, so that you can understand how the company will benefit from the long-term relationship. It is advisable to be aware of whether the supplier has expansion or development plans and how they would affect the relationship, if so. Furthermore, verify that they have the quantity of supplies that the company needs and that they will meet the stipulated delivery deadlines.
Reliability and quality
On the other hand, the lowest price does not mean giving the best value for money. If the company's objective is reliability and quality from suppliers, they must decide how much they are willing to pay for supplies to achieve the correct balance between cost, reliability, quality and service. The change of suppliers in supplies, under no circumstances, should affect the quality of the product offered by the company, because it puts at risk the acceptance of the product by the consumer.
Therefore, ON Digital came to the conclusion that changing suppliers just to save money can put the company at risk, since trust mechanisms must be recreated with the new supplier, which also implies time to synchronize operations between both companies and, above all, to analyze that this does not mean a transition that affects the organizational culture.
It is highly related to corporate values, professional motivation and the real possibility of promotion. This is why trends indicate that the relationship between suppliers and customers is more focused on relationship marketing than transaction marketing.
To establish a good relationship with suppliers, they must provide you with:
● Good items and services.
● The right price.
● Meet delivery times.
● Resolve disputes with ease.
However, there must also be customer-supplier trust. In this singapore whatsapp data regard, trust can be defined as the willingness to depend on the same partner in a series of businesses. This relationship will result in reducing uncertainty at the time of exchanges, reducing the risk that an organization faces when investing large sums of money and, under any circumstances, there will be a belief that neither party will take advantage of the situation. Often, the customer-supplier dependency shares the same corporate values, which facilitates the bond of solidarity between both companies.
There is research that claims that “customer-supplier loyalty may depend on the sector of both companies, the aggressiveness of the competition they face, barriers to change or risk aversion.” Anderson and Mittal, 2000; Jones and Sasser, 1995.
Customer-supplier relationship
Changing suppliers?
Changing suppliers is an important decision, since it means breaking the bonds of trust already established. It also means breaking ties with a company that only undertakes actions that will be positive for the company, reducing the chances of receiving an opportunistic attitude from the company. It also means leaving aside the cooperation and coordination that evolves over time.
Know your suppliers
When selecting and negotiating with a supplier, several factors are taken into consideration. It is essential to evaluate the weight of each of these factors, but it will depend on the priorities and strategies of the company. In addition, it is essential to have a thorough understanding of how the supplier works, so that you can understand how the company will benefit from the long-term relationship. It is advisable to be aware of whether the supplier has expansion or development plans and how they would affect the relationship, if so. Furthermore, verify that they have the quantity of supplies that the company needs and that they will meet the stipulated delivery deadlines.
Reliability and quality
On the other hand, the lowest price does not mean giving the best value for money. If the company's objective is reliability and quality from suppliers, they must decide how much they are willing to pay for supplies to achieve the correct balance between cost, reliability, quality and service. The change of suppliers in supplies, under no circumstances, should affect the quality of the product offered by the company, because it puts at risk the acceptance of the product by the consumer.
Therefore, ON Digital came to the conclusion that changing suppliers just to save money can put the company at risk, since trust mechanisms must be recreated with the new supplier, which also implies time to synchronize operations between both companies and, above all, to analyze that this does not mean a transition that affects the organizational culture.