Interpersonal communication skills and negotiation with suppliers are critical for establishing strong partnerships. Effective communication fosters mutual understanding and trust, which are the foundations of long-term relationships. These skills allow the buying organization to align with suppliers on goals, expectations, and performance standards. Negotiation helps in creating agreements that are beneficial to both parties, ensuring that suppliers are motivated to maintain quality and reliability. While driving price breaks and discounts (B), keeping competitive suppliers viable (C), and achieving cost-cutting targets (D) are important, the primary advantage lies in forming strategic partnerships that lead to a more resilient and collaborative supply chain.
References:
* Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
* Burt, D. N., Petcavage, S. D., & Pinkerton, R. L. (2010). Supply Management. McGraw-Hill/Irwin.