The latest survey by OEM Profitability and Supplier Relations proved that a good supplier relation influences financial profits of the company. The profits resulting from partner-like relations with contractors are even 5 times higher than those resulting from lower price negotiated with a supplier.
Even 5 times higher profits
The survey has been carried out by W. Henke, the President of Planning Perspective and marketing professor at the Oakland University, who specialises in analysing buyer-supplier relations. For the first time, it has actually been demonstrated that good relations with suppliers positively correspond to the profits, while poor relations significantly decrease it. The value of non-property benefits such as sharing latest technologies, delegating the best teams to handle the client or outside contractual support for a commercial partner is irreplaceable, which is reflected in financial profits. Additionally, the survey shows that the financial value of such benefits is even 5 times higher that the profits from lower price negotiated with a supplier.
Read more at: http://www.ppi1.com/supplier-profitability/