examine the six supplier strategies. It is important to know and be able to apply these strategies correctly to a business. For this week write a paper that examines the six supplier strategies and applies each strategy to a specific type of business. Assignment format: Separate the paper into sections by strategy. Each section should contain a brief description of the strategy, its pros and cons, and how to properly apply it to the type you business you choose.

Answer:

Supplier strategy and their applications to the business.

1. Conduction of joint improvement activities. This collabortive approach enables learning through collective knowledge and experience. The improvement at the supplier's end might improve the supply end performance drastically. It will also enable the company to find vital insights about the supplier end issues and help in redesigning its supplier strategy.On the downside, the monitoring and handholding during the exercise needs dedicated resources, the absence of which may cause the exercise to be futile.

2. Sharing of information - This involves sharing of vital information about the mutual interests of company and supplier.The supplier should be shared with information selectively. The framework for this sharing should be pre defined and rigid. The sharing will enable the company to know more about the business and gain vital insights about the competition and industry practices. On the downside, extreme care should be exercised so that the information may not get misused.

3. Learning about the supplier's business - The greater insights about the supplier's business, geater opportunities of mutual benefits can be created. The supplier's capability can be used to create future plans with greater collaboration.By knowing more, the supplier can be helped with techical or tactical support to reinforce the relationship and creating a more responsive and efficient supply chain. There is no downside to it.

4.Supervision of suppliers - The suppliers should be sent the report at regular intervals and should be apprised about their performance on regular basis. They should be provided with immediate feedback about the performance. The trouble areas should be identified and resolved mutually. If necessary, company resources should be delpoyed to assist on the supply issues. While doing so, one should believe in the capability of supplier and don't force upon the viewpoints unnecessarily.

5. Develop preferred supplier program - Such programs include select suppliers who are most important to the business, and involve capacity and capability enhancement programs, exclusive arrangements and mutually beneficial initiatives. Such programs create long term relationships by improving mutual trust and collaboration and lead to co prosperity. The preferred suppliers must acknowledge the benefits of this exclusive relationship and should offer most competitive terms to the company in exchange of preference. Such relationships work only when reciprocated equally from both ends.

6. Communication - This is the most important factor in supplier relationship.Timely and periodic communication about changes, developments, new initiatives and policies is essential for both parties. In return, the insights and issues from the supplier's end also needs to be communicated. It not only ensures transparency in relationship and builds mutual trust, but also helps to act proactively to address business problems and take advantage of opportunities.However, the extent and boundaries of communication should be pre defined, monitored and controlled to avoid negative implications later.