Faculty & Research
Strengthening the Purchaser-Supplier Partnership
By: Judi Brownell Ph.D. and Dennis Reynolds Ph.D.
Executive Summary: A survey of 73 food-service purchasing agents, representing several segments of the food-service industry, was jointly conducted by The Center for Hospitality Research and Richmond Events. The study found that trust and communication are key elements in developing a strong partnership between purchasers and suppliers. Partnerships have come to be viewed as a competitive advantage for food and beverage purchasers who are looking for long-term economic success.
The food-service purchasers agreed that the most essential characteristic for establishing a strong relationship was trust. Trusted suppliers were described as communicating effectively, listening well, and demonstrating a willingness to work collaboratively to anticipate and solve problems. Also important to purchasers is the supplier's willingness to help solve the purchaser's problems in a timely and proactive manner.
Communication is another important factor. Suppliers who communicate clearly and directly, and who listen well, are judged to be more effective than their peers. One intriguing finding is that personal connections with the supplier's representative remains an important element of the purchasersupplier relationship despite the increasing use of electronic communications of all kinds. Due to the importance of these personal relationships, turnover in supplier representatives continues to be one of the most troublesome challenges that purchasers face in cementing partnerships.
When purchasers responded to an open-ended question asking them to consider the attributes that make for a good supplier, they described someone whom they could trust and someone who demonstrates business acumen by providing excellent service-a factor purchasers judged to be more important than product price or brand.
Looking ahead, the respondents suggested that, as purchasers, they will likely be dealing with reduced budgets and will need to carefully control costs. Turnover will also remain a key concern. In a time of constant change and increasing globalization, most purchasers expect that they will make increasing use of available communications technology. In spite of this transition, personal interaction will continue to be essential to building the strong partnerships that will define successful business practice in the decades ahead. In this regard, there is no doubt that suppliers' personal characteristics will influence the effectiveness of the purchaser-supplier relationship.
Your Comments Please
If this CHR Report made a positive impact on your management approach or business operations, we welcome your commentary. We would like to post your comments on our website. Please submit your comments to js372@sha.cornell.edu and rohit.verma@cornell.edu.
Download The Report
To view the whole report, please click on the link below
- Strengthening the Purchaser-Supplier Partnership By: Judi Brownell Ph.D. and Dennis Reynolds Ph.D.
| If you have trouble downloading a pdf, and are able to install software on your computer, try upgrading to the latest version of Adobe Acrobat Reader to see if that allows you to read it. |
Other Reports or Articles You May Find of Interest
