Thetraditional supply chain flow (figure 1) might seem easy to understand, yet,there are various intermediaries’ constraints that harden up the fluency of thefulfillment process.Retailersare considered as the voice of the end users, as they pull up the requirementsand issues that customers are having in terms of delivery delays, salesforecasts, complaints concerning defective products or even inventory turnoversand push it up to Manufacturers & wholesalers (if any).Theascending flow of information to go from retailer to supplier is a criticalpoint in determining the operational behavior of production and deliveryplanning,  If weare to contemplate and analyze the very first points to take into considerationwhile establishing a supply chain flow, we will have to point out at therelationship establishment among all the entities involved and mainly thesupplier/retailer relationship which must be built on the following principles: ·        Trust:  Anessential factor which is measured by the reliability of the other party, it’sthe key factor that define the future type of relationship linking bothsuppliers and retailers.Mutualtrust can ease the collaboration and coordination efforts, hence smooth asuccessful interaction in a way that it plays a crucial role into determiningboth:o  Cooperation’s level : to what extent bothparties can go into sharing risks and benefitso  Cooperation’s Duration: Till when the partieswill be willing to continue business with each other.

 The relationship betweensuppliers and retailers can be characterized as being collaborative, but, as amatter of fact, it can be disguised under several forms:o   Adversarial relationship: When retailers do not like doingbusiness with a specific supplier, as he might be too complicated to deal within terms of feasibility of operational processes.o   Transactional relationship: When the function of selling overwhelmsthe whole operational model of doing business, the supplier in this case operatesunder the slogan of excessive sales, which derivate him to adopt the push salesstrategy, in where they are pushing products inside the chain even though theretailer doesn’t need them.This relationship stops the CLC fromgrowing in a healthy way, as it can be perceived as profit oriented more than acustomer one.o   Fragmented relationshipThis type of relationship occursonly when the business is run by the buying and selling function only, thesupplier adopting the selling strategies is managing all customers activitiesin where the information systems are semi inexistent, and the development ofnew information technologies are developed only based on the requests of theretailers which are driven by the customers (such as EDI).To go deeper to thespecifications of a successful supplier retailer interaction, various crucial operationalfactors are to be listed and covered as follow:

x

Hi!
I'm Erica!

Would you like to get a custom essay? How about receiving a customized one?

Check it out