Essentials of relationship

Good buyer seller relations are another

important aspect of efficient and effective
buying. Smooth running of industry needs
this cordial relationship. Buyer and seller
must understand that their growth
depends on goodwill and relationship
between the two.

Essentials of relationship
This relationship is on peak when supplier
supplies quality goods,
in the right quantity,
at the right price and
at the right time and place and
values business ethics
and buyer appreciate problems of suppler,
make timely payments and ensure supplier
organization makes a reasonable profit and attain
growth.

Essentials of relationship

Strong & healthy relationship is important for

growth of their respective firms to both buyer and
seller. This aspect has to be recognized by both
Both must further realize that their respective
organization can be benefited from each others
progress.
Mutual trust, cooperation and understanding can
be developed by respecting of buying and selling
which ultimately replace suspicion and
aggressiveness.

Essentials of relationship

Both parties shall have full appreciation of each

others problems.
Each party shall take effective and honest steps
and strive hard to discharge their respective
obligations laid-down as per contractual
provisions.
Under shelter of contractual provisions they shall
not be rigid, rather try to go beyond theses
provisions to satisfy needs of other.

Expectation of Buyer from Seller

Expectation of buyer from a reliable source

of supply
In purchasingExpectation
there isof aBuyer
proverb
that
from Seller
Half of the battle in purchasing is won if you are
able to locate a right source of supplies
A right source of supplies shall meet the
following aspiration of the buyer

Expectation of Buyer from Seller

On Reliability Front
Supplies materials at competitive rates with
consistently good quality.
Supplier shall be reputed, stable and financial
strong.
Not only supplies good quality materials but
have suitable testing facilities for satisfaction of
buyer.
Integrity of supplier shall be above board .

Expectation of Buyer from Seller

Not only supplies consistently good quality

materials but strive very hard for product
improvement- enhance utility of product to buyer.
Furnishes various certificates (test certificate ,
interchangeability certificate , guarantee
certificate etc) if stipulated in order, alongwith
supplies.
Strictly follows invoicing, packaging and
dispatching instruction contained in PO

Expectation of Buyer from Seller

On Technical Front

Provides assistance on application engineering.

Provides assistance in design.

Handle special needs and contributes to improve

product efficiency.

Expectation of Buyer from Seller

Supplies material within assured delivery period

without constant follow up.
Strives very hard to improve upon delivery
period when there is crisis at buyers end without
exploiting the situation.
Advance communication in case of expected
delays in deliveries.
Also maintains stock locally to meet
requirements at a short notice.

Expectation of Buyer from Seller

Offers off the shelf deliveries of fast moving

spares.

Plans supplies in such a way to reduce inventory

of buyer.

Dependable supplier for steady flow of

materials-ultimate aim being JIT (Just in Time).

Expectation of Buyer from Seller

CONVENIENCE FRONT

Enters into an agreement of commercial terms

and conditions for long-term association and
faster finalization of orders, without any
references and cross-references.

Attends promptly to problems of buyer related to

inspection, replacement of rejection and
rectification of damages at reasonable terms.

Expectation of Buyer from Seller

Faster communication through personnel visits,

phones, telex-fax, E- mail etc.

Keeps buyer informed about market

development.

Adherence to commercial terms and conditions.

Expectation of Buyer from Seller

AFTER SALES SERVICE FRONT:

Has an efficient network to provide after-sales

service.

Prompt availability of quality spares at

competitive rates.

Training facilities to buyer personnel.

Expectation of Buyer from Seller

OTHER FRONT:
Building up a mutual market (recommending
buyers product to other buyers)

Developing mutual understanding- a sense of

partnership for each other and appreciating each
others limitations.

Transparency in relationship- buyer shall have

easy excess to data of suppliers input cost etc

SELLERS EXPETATIONS FROM A

BUYER
Expectations of a Seller from Buyer

A reliable supplier expects continuity of business

dealing with buyer in return for reasonable profit.
This relationship can not be developed on lowest
price consideration alone.

In case of price increase due to sudden change

in the market conditions it is expected that buyer
will suitably compensate and not allow supplier
to suffer losses.

SELLERS EXPETATIONS FROM A

BUYER

Supplier expects from a good buyer payment of

invoices promptly. If payments are unduly
delayed, his profit margin shall be eaten away by
way of interest burden and efforts in expending
payment.

Prompt inspection, if PDI (Pre-despatch

Inspection) is required otherwise sellers
working capital shall be blocked in inventory of
finished goods.

SELLERS EXPETATIONS FROM A

BUYER

Also expects from a buyer that-

Orders placed contains correct

specification in unambiguous terms.
Purchase terms are clear and not very
stringent
Non cancellation of Purchase Orders

Timely clarifications to any of suppliers

queries.

SELLERS EXPETATIONS FROM A

BUYER

Avoidance of unnecessary rejections

Respectful treatment to sellers representation

when they visit buyers place.

Mutual understanding and recognition of each

others requirements.