Technology: Reading in Electronics

Running head: READING IN ELECTRONICS
Reading in Electronics
Name:
Course:
Institution:
Tutor:
Date:
Establishing and managing effective buyer-seller relationship in the supply chain is an important prerequisite for the business success of any business (Hutt & Speh, 2012). The importance of suppliers’ role in contributing to the performance of electronic firms for instance, is currently inevitable. The electronics-buying firms are increasingly relying on their external suppliers’ base for product development, quality, productivity, and for more technology ideas. Most of the roles formally facilitated by workers are being executed by suppliers in order to cut expenses of having too many workers (Hutt & Speh, 2012).
Suppliers are assuming the roles abandoned by workers who are laid off by their employers with a view of reducing costs. Those new roles for suppliers include managing inventory for customers (Hutt & Speh, 2012), producing near-perfect quality products, providing steady price reductions and earlier participation in product development. Changing the role of suppliers in electronic industry is one of the emerging best practices for electronics-buying firms.
Improving the buyer-seller relationship again can help reduce potential deficiencies in electronic suppliers’ performance. Poor relationship between buyers and sellers often lead to distortion in supply schedules which disrupt the supply chain thus leading to shutdown of production lines, if this happens then, huge losses to buying firms can result contradicting buyers’ efforts of enhancing competitiveness through squeezing costs out of their supply chain (Hutt & Speh, 2012). Firms which are in long-term stable relationships with their suppliers achieve high profitability and returns on investment. Better buyer-seller relationships also lead to significant positive effect on manufacturer performance (Hutt & Speh, 2012), supplier performance and thus improving the performance of the entire supply chain for the electronics industry.
The components of the buyer-supplier relationship which require much focus are the trust; this is an important factor for electronic industry in sustaining the wider business network and contributing to the success of the firms in electronic business (Krosinsky, Robins & Viederman, 2012). Trust between buyers and sellers indicate credibility in business, trustworthy relationship in business helps decrease transaction costs, reduce the risks of opportunistic behavior and facilitate cooperativeness transactions.
Interpersonal relationship; this involves drawing on connections or networks; it is a reciprocal obligations in business rations. Interpersonal relationships in business facilitate decision-making and management of business enterprises (Krosinsky, Robins & Viederman, 2012). Communication; a good communication between buyers and suppliers help minimize uncertainty pertaining the smooth flow of demand and ...