The buyer-supplier relation is very importance for the management. Value Chains, Procurement and Outsourcing, are the main significant parts the buyer-supplier relations. The relationships between the buyers and suppliers have been an increasing emphasis on the changes that have happened during the last decades. The competition in the global market is increasing, there is a growing attention in managing the long-term relationship of buyer-supplier as the management of these relationships has increased returns for both the parties (Burf, 2009). The buyer can support their global competitiveness and protecting the access to external resources that the organization wants.
The supplier can reach to the higher proceeds by maintaining a long-term relatioships. The buyers and suppliers stress the importance of secure relationships, potential to achieve growth in the form of enhanced profits or lowered costs. Here, Value Chains, Outsourcing, and Procurement are very much compact with the buyer-supplier relationship. The value chain is one of the main parts of this management where the entire series of activities produce and put up value at every step. The value chain thought takes apart functional activities from the inefficient activities. The company can get many advantages from this value creating activity. The entire value delivered by the company is the total of the value built up all throughout the company.
The customer wants that there should be some restrictions on the suppliers for the goods they are selling in the market (Turner, 2012). The buyer is strong and frequently controls the supplier. A majority of the suppliers confirmed that the buyer was the more substantial as well as the main part of the relationship. It is important for the organizations to give importance to their customers and establishing relationship with them. The companies should use the advanced technology for increasing their performance. The buyers want quality products and the suppliers has to increase their efficiency.