Abstract
As mentioned in chapter 4, transaction-based models are great for driving competition and ensuring low prices. Unfortunately, the highly competitive processes that enable an organization to get the best price do not always bring out the best from suppliers. Buyers can unlock value by moving along the sourcing continuum to hybrid or relational contract models. Properly structured relational contracting models—preferred provider, performance-based, and Vested business models—lead to organizations viewing suppliers as sources of competitive advantage, not as operating at arm’s length. As an organization moves to collaborative, relational Sourcing Business Models, it needs to apply different methods. Most importantly, it also needs a different mindset to unlock potential.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
Oliver Williamson, “Outsourcing: Transaction Cost Economics and Supply Chain Management,” Journal of Supply Chain Management (April 2008): 5–16.
Gary L. Frazier, Robert E. Spekman, and Charles R. O’Neal, “Just in Time Exchange Relationships in Industrial Markets,” Journal of Marketing 52, no. 4 (October 1988): 52–67; http://wwwjstor.org/discover/10.2307/1251633?sid=21105463022561&uid=2&uid=4&uid=3738664; accessed February 27, 2015.
Gerard Chick and Robert Handfield, The Procurement Value Proposition (London: Kogan Page, 2012).
J. Dwyer, Collaborative Advantage (London: Oxford University Press, 2000).
no. 7 (1997): 535–556. J. Dwyer and H. Singh, “The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage,” Academy of Management Review 23, no. 4 (1998): 660–679.
Jeanette Nyden, Kate Vitasek, and David Frydlinger, Getting to We: Negotiating Agreements for Highly Collaborative Relationships (New York: Palgrave Macmillan, 2013).
A description of this program can be found in Kate Vitasek and Steve Geary, Performance-Based Logistics: A Contractor’s Guide to Life Cycle Product Support Management (Knoxville: Haslam College of Business; University of Tennessee, 2008).
Kate Vitasek; “ProcurementDepartmentsNegotiating ‘Too Aggressively,’” Forbes Magazine, March, 3, 2015; http://www.forbes.com/sites/
Leah Rae, “GT Advanced Technologies Signs Multi-Year Sapphire Materials Agreement with Apple,” LED Inside, November 6, 2013; http://www.ledinside.com/news/2013/ll/gt_advanced_technologies_signs_multi_year_sapphire_materials_agreement_with_apple; accessed January 3, 2015.
Arjan J. van Weele, Purchasing & Supply Chain Management: Analysis, Strategy, Planning and Practice (n.p.: Cengage Learning EMEA, 2010), p. 209.
Jonathan L. S. Byrnes, Islands of Profit in a Sea of Red Ink: Why 40 Percent of Your Business Is Unprofitable and How to Fix It (New York: Portfolio Hardcover, 2010).
Copyright information
© 2016 Bonnie Keith, Kate Vitasek, Karl Manrodt, and Jeanne Kling
About this chapter
Cite this chapter
Keith, B., Vitasek, K., Manrodt, K., Kling, J. (2016). Embracing Codependency: Enhancing Success. In: Strategic Sourcing in the New Economy. Palgrave Macmillan, New York. https://doi.org/10.1007/978-1-137-55220-4_6
Download citation
DOI: https://doi.org/10.1007/978-1-137-55220-4_6
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-137-55218-1
Online ISBN: 978-1-137-55220-4
eBook Packages: Business and ManagementBusiness and Management (R0)