Management of Buyer-Supplier Relationshipsin the Supply Chain - Case studies of Auto&Telem supply chains

Abstract: This dissertation consists of two parts. The first part isabout“Managing buyer-supplier relationships in autoproduction chains ­ a case study of Volvo and its supplierrelationship management”. The second part is about“Managing buyer-supplier relationships in telecom supplychains ­ a case study of Ericsson and its supplierrelationship models in different business situations”.The scope of this study is restricted to supply chains inautomotive and telecommunication industries, where the successof supply processes is dependent on how well a company managesits supply chain with horizontal or vertical integration tofulfill customer demands.The research is carried out as a number of case studies ofbuyer-supplier relationship management in the auto and telecomsupply chains. The aim was to analyze how a company fulfillscustomer demand in the best way through different supplierrelationships, and how and why alternative relationship typesare used in reality.The study is based on the relationship between two focalcompanies and their suppliers. Case study methodology is used,and data is collected from selected cases through interviewsand observations. Analysis is carried out within and acrosscases. From the case interpretation and analysis, conclusionsare drawn as to which strategic level of buyer-supplierrelationship is appropriate for different situations.As a result and in conclusion, a static supplychain-reaction model is built at the end of the Part I. Thestatic model describes the importance of collaborativebuyer-supplier relationships in the product developmentprocess. Based on this model, it is concluded in Part II thatthe most suitable supplier relationship is different fordifferent products. For the same product, the most appropriatebuyer-supplier relationship varies with the product’s lifecycle timing. Therefore, two dynamic buyer-supplierrelationship models under different business conditions and indifferent product life-cycle periods are created in Part II.The models apply to dynamic processes, not to interactingcompany organizations in general.The study increases the knowledge regarding selection of themost appropriate supplier relationships in different businesssituations.Key words:buyer-supplier relationship, sourcingstrategy, supply chain management