Notesale: Turn your study into money

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The supplier-buyer
relationship
/ contract continuum

Spot
purchase

ITC

Regular
trading

Call-off
contracts

Fixed
contracts

Partnership

Joint
ventures

Internal
provision

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Repeated spot purchases
You need to ensure that the supplier remains competitive
Frequent interaction will lead to mutual understanding
Suppliers used frequently tend to give you higher priority - you
may also have one “preferred supplier”
Good when you don’t know requirements in advance and/or
when each requirement is different

ITC

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4
You commit to purchase a certain volume or value
This type of contract is more attractive to the supplier
and you may therefore get better conditions
Good for frequent requirements when volumes can be
predicted in advance

ITC

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Call-off and fixed contracts
Items purchased

ITC

Fixed or calloff contract?

Why or why not?

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GOAL

Partnerships are appropriate for critical and
bottleneck items and where the focus is on longterm product development
They can allow you to achieve a better result than
you could have achieved alone
Partnerships require time and effort so selecting
the right partner is fundamental
ITC

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6-3

How to develop a partnership:
Becoming aware of the need for a partnership
Conceptualising the partnership
Pursuing the partnership
Confirming the partnership
Implementing and administering the partnership
Assessing the partnership
Terminating the partnership
ITC

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6-4a

Partnerships sometimes fail because:
The buyer is unable to adjust to the partnership culture
One party is more dependent on the relationship than the other
Key people are replaced
The level of time and investment needed was underestimated
The relationship loses commercial focus

ITC

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6-1

Partnership and your organisation
Three of your purchase products where

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