Developing and Managing Business Relationships

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Developing and Managing Business Relationships
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Objectives

• To examine patterns of buyer-seller relationships
  in business markets
• To examine various relationship connectors used
  in B2B marketing
• To examine critical determinants of process in
  managing alliances and partnerships in a B2B
  setting

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Collaborative Exchange

• Features close information, social, and
  operational linkages as well as mutual
  commitments.

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Transactional Exchange

• Centers on timely exchange of basic products for
  highly competitive market prices.

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The Relationship Spectrum
Transactional Exchanges
CollaborativeExchanges
Value-added Exchanges
Anonymous transactions/
Complete collaboration and Automated
purchasing
integration of supplier with

customer or channel partner
Source Day, G.S. "Managing Market
Relationships," Journal of tbe Academy of
Marketing Science 28 (winter 2000).
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Key Constructs of Buyer -Supplier Relationships
Types of buyer-seller relationships based on key
relationship connectors
Market and situational determinants of buyer -
supplier relationships
Customer evaluations of the supplier
Information exchange
Availability of alternatives
Operational linkages
Customer Satisfaction
Supply market dynamism
Legal bonds
Cooperative norms
Importance of suppply
Customer evaluation of supplier performance
Adaptations by sellers
Complexity of supply
Adaptations by buyers
Source Cannon, J.P. and W.D. Perrault, Jr.
Buyer-Seller Relationships in Business Markets,
Journal of Marketing Research 36 (November 1999).
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Supply Chain Management
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Objectives

• To understand the role of supply chain management
  (SCM) in B2B marketing
• To examine the importance of integrating firms
  and functions throughout the entire supply chain
• To examine the critical role of logistics
  activities in achieving SCM goals
• To understand the role of e-marketplaces in B2B
  marketing strategy

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What is SCM?

• Supply Chain Management (SCM) is the integration
  of business processes from end user through
  original suppliers that provides products,
  services, and information that add value for
  customers
• Cooper, Lambert Pugh

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The Value Chain
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The Supply Chain
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The Supply Chain
Primary Vendor
Secondary Vendor
Customer
Manufacturer
Distribution Center
Ultimate Consumer
Information Flow
Material Flow
Coyle, Bardi, and Langley, The Management of
Business Logistics, 1996, p.353.
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Integrated Logistics Concept
(Robeson, Copacino and Howe, The Logistics
Handbook, 1994, p.9.)
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Comparison of Traditional Systems with the Supply
Chain
(Ellram and Cooper, Characteristics of Supply
Chain Management and the Implications for
Purchasing and Logistics Strategy,
International Journal of Logistics Management,
4, no.2, 1993.)
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Habits of Highly Effective Supply Chains

• SCM quality depends on changing business
  practices within and outside the firm
• Eliminate activities that do not add value to the
  end product/service, or that duplicate effort
• Integrate demand planning across all activities
• Pool risks among all supply chain partners

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Habits of Highly Effective Supply Chains

• Distinguish between desirable product variety and
  costly duplication
• Improve asset utilization by working with supply
  chain partners to assure goods are produced at
  near-consumption rates
• Recognize where and how customer value is added
  in the supply chain align revenue-generation
  and incentives accordingly
• (Charles L. Troyer, 1997)