Supply chain integration – the supplier relationship with the buyer is directly proportional to the frequency of involvement. This allows the supplier to develop a better understanding of its customer. Consolidation of the existing products and exploring the new area for reaping more benefits can be attained. For example, the distribution channels are utilized by the supermarket for transferring the products at appropriate place and achieving the sales objectives. The Outcome of the exchanges of Buyer-supplier always varies on three types, such as the buyer’s value, the supplier’s value and the value related to the creation and capture. In the buyer’s value part, the outcomes always depend on the relationship of buyer and supplier for the maintenance of the long-term relationship which gives safety guarantee financially.
It shows a great expectation for achieving more business profit. Aspects of non-finance relate to the value creation for suppliers, such as the knowledge access and technology access. The quality of its operation and the prestige of it can be improved by the knowledge access and technology. It admits the expansion of the base of the customer depending on the reputation market management company (Parker, 2010). The perspective of non-finance gives the offer of some aspects that have the gravity to increase the future profits for the supplier. It does not need to establish a relationship of co-operation that is not necessary to it. The first source of Buyer’s intrinsic value is learning that enables the suppliers to develop the abilities.
They can con tribute to the progress of the performance of the suppliers to buyers.The things come from the buyer- supplier relationship that can support the research progress. It can lead to generate patents and protect consequently the capitals which are intellectual. It also provides wide opportunities to launch new products and services in the market. Thus the abilities turn on the relationship of the buyer itself through knowledge transfer. It could have been influenced by the demands of the buyers for innovation. Therefore, the mechanism process of the government need to be used in such relationships to enhance learning that would assist to make progress for both the parties appropriately who are involved.