Describe the seven stages of evolution in supplier partnerships. Which three do you think are most critical, and why? Please provide examples. (MO 2.1) Uncertainty and tentativeness; the buyer & seller act as if they are on a first date. They are uneasy and uncertain about the motives and the outcome. Short term pressures; buyer will be under pressure to cut costs and the seller will be under pressure to increase sales volume. Both will be cautious and vague. Need for new approaches; negotiations will occur at some point. Buyer will try for price discounts, improved payment terms and other concessions. The supplier will try for higher volume to offset concessions made by buyer. Adoption of new paradigms; both partners explore ways to move toward the concept of mutual benefit. Both partners must accept that absorbing costs within the partnership give neither an advantage. Awareness of potential; both partners become fully aware of the possible benefits that can be realized from the partnership. They realize by working together they can exceed any short term advantages. Adoption of new values; both partner adopt the new values contained in the buyer-supplier partnership. Both finally believe that the more information they share, the better they can help each other. Mature partnering; finally the partnership is solidified. There’s a level of trust and cooperation and communication between the partners. Uncertainty and tentativeness would be one area that would be important to the partnership. Both partners are going to question every word said between each other and wonder what’s really in it for me. Trust doesn’t come easy and each one has to give the other the assurance of trust. They must give up something in order to gain the trust of the other. Short term pressures will be relentless on each partner, not only from each other but from within their organizations. Manager’s want instant results, no matter the circumstances. Going into a partnership doesn’t...
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