buyer- seller relations

8/9/2019 Buyer- Seller Relations

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Essentials of relationshipEssentials of relationship

Good buyer seller relations are anotherGood buyer seller relations are another

important aspect of efficient and effectiveimportant aspect of efficient and effective

buying. Smooth running of industry needsbuying. Smooth running of industry needs

this cordial relationship. Buyer and sellerthis cordial relationship. Buyer and seller

must understand that their growthmust understand that their growth

depends on goodwill and relationshipdepends on goodwill and relationship

between the two.between the two.


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This relationship is on peak when supplierThis relationship is on peak when suppliersupplies quality goods,supplies quality goods,

in the right quantity,in the right quantity,

at the right price andat the right price andat the right time and place andat the right time and place and

values business ethicsvalues business ethics

and buyer appreciate problems of suppler,and buyer appreciate problems of suppler,make timely payments and ensure suppliermake timely payments and ensure supplierorganization makes a reasonable profit andorganization makes a reasonable profit and attainattaingrowth.growth.


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Both parties shall have full appreciation of eachBoth parties shall have full appreciation of each

other!s problems.other!s problems.

#ach party shall take effective and honest steps#ach party shall take effective and honest steps

and strive hard to discharge their respectiveand strive hard to discharge their respectiveobligations laid$down as per contractualobligations laid$down as per contractual

provisions.provisions.

%nder shelter of contractual provisions they shall%nder shelter of contractual provisions they shallnot be rigid, rather try to go beyond thesesnot be rigid, rather try to go beyond theses

provisions to satisfy needs of other.provisions to satisfy needs of other.


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#&pectation of Buyer from Seller #&pectation of Buyer from Seller

Expectation of buyer from a reliable sourceExpectation of buyer from a reliable source

of supplyof supply

'n purchasing there is a proverb that'n purchasing there is a proverb that

(()alf of the battle in purchasing is won if you are)alf of the battle in purchasing is won if you are

able to locate a right source of supplies*able to locate a right source of supplies*

+ right source of supplies shall meet the + right source of supplies shall meet the

following aspiration of the buyer following aspiration of the buyer



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On Reliability FrontOn Reliability Front

Supplies materials at competitive rates withSupplies materials at competitive rates with

consistently good quality.consistently good quality.

Supplier shall be reputed, stable and financialSupplier shall be reputed, stable and financial

strong.strong.

ot only supplies good quality materials butot only supplies good quality materials but

have suitable testing facilities for satisfaction ofhave suitable testing facilities for satisfaction ofbuyer.buyer.

'ntegrity of supplier shall be above board'ntegrity of supplier shall be above board..


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ot only supplies consistently good qualityot only supplies consistently good quality

materials but strive very hard for productmaterials but strive very hard for product

improvement$ enhance utility of product to buyer.improvement$ enhance utility of product to buyer.

-urnishes various certificates test certificate ,-urnishes various certificates test certificate ,interchangeability certificate , guaranteeinterchangeability certificate , guarantee

certificate etc/ if stipulated in order, alongwithcertificate etc/ if stipulated in order, alongwith

supplies.supplies.

Strictly follows invoicing, packaging andStrictly follows invoicing, packaging and

dispatching instruction contained in 01dispatching instruction contained in 01


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On Technical FrontOn Technical Front

0rovides assistance on application engineering.0rovides assistance on application engineering.

0rovides assistance in design.0rovides assistance in design.

)andle special needs and contributes to improve)andle special needs and contributes to improveproduct efficiency.product efficiency.


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Supplies material within assured delivery periodSupplies material within assured delivery periodwithout constant follow up.without constant follow up.

Strives very hard to improve upon deliveryStrives very hard to improve upon delivery

period when there is crisis at buyers end withoutperiod when there is crisis at buyers end withoute&ploiting the situation.e&ploiting the situation.

+dvance communication in case of e&pected +dvance communication in case of e&pected

delays in deliveries.delays in deliveries. +lso maintains stock locally to meet +lso maintains stock locally to meet

requirements at a short notice.requirements at a short notice.


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1ffers off the shelf deliveries of fast moving1ffers off the shelf deliveries of fast moving

spares.spares.

0lans supplies in such a way to reduce inventory0lans supplies in such a way to reduce inventory

of buyer.of buyer.

2ependable supplier for steady flow of2ependable supplier for steady flow ofmaterials$ultimate aim being 3'T 3ust in Time/.materials$ultimate aim being 3'T 3ust in Time/.


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CONVENIENCE FRONTCONVENIENCE FRONT

#nters into an agreement of commercial terms#nters into an agreement of commercial termsand conditions for long$term association andand conditions for long$term association andfaster finalization of orders, without anyfaster finalization of orders, without anyreferences and cross$references.references and cross$references.

+ttends promptly to problems of buyer related to +ttends promptly to problems of buyer related toinspection, replacement of re4ection andinspection, replacement of re4ection andrectification of damages at reasonable terms.rectification of damages at reasonable terms.


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-aster communication through personnel visits,-aster communication through personnel visits,

phones, tele&$fa&, #$ mail etc.phones, tele&$fa&, #$ mail etc.

5eeps buyer informed about market5eeps buyer informed about market

development.development.

+dherence to commercial terms and conditions. +dherence to commercial terms and conditions.


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OT!ER FRONTOT!ER FRONT

Building up a mutual market recommendingBuilding up a mutual market recommendingbuyer!s product to other buyers/buyer!s product to other buyers/

2eveloping mutual understanding$ a sense of2eveloping mutual understanding$ a sense ofpartnership for each other and appreciating eachpartnership for each other and appreciating eachother!s limitations.other!s limitations.

Transparency in relationship$ buyer shall haveTransparency in relationship$ buyer shall haveeasy e&cess to data of supplier!s input cost etceasy e&cess to data of supplier!s input cost etc


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SELLER"S E#$ETATIONS FRO% ASELLER"S E#$ETATIONS FRO% A

&'(ER&'(ER

Expectations of a Seller from &uyer Expectations of a Seller from &uyer

+ reliable supplier e&pects continuity of business + reliable supplier e&pects continuity of business

dealing with buyer in return for reasonable profit.dealing with buyer in return for reasonable profit.This relationship can not be developed on lowestThis relationship can not be developed on lowestprice consideration alone.price consideration alone.

'n case of price increase due to sudden change'n case of price increase due to sudden changein the market conditions it is e&pected that buyerin the market conditions it is e&pected that buyerwill suitably compensate and not allow supplierwill suitably compensate and not allow supplierto suffer losses.to suffer losses.


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&'(ER&'(ER

Supplier e&pects from a good buyer payment ofSupplier e&pects from a good buyer payment ofinvoices promptly. 'f payments are undulyinvoices promptly. 'f payments are undulydelayed, his profit margin shall be eaten away bydelayed, his profit margin shall be eaten away by

way of interest burden and efforts in e&pendingway of interest burden and efforts in e&pendingpayment.payment.

0rompt inspection, if 02' 0re$despatch0rompt inspection, if 02' 0re$despatch

'nspection/ is required otherwise seller!s'nspection/ is required otherwise seller!sworking capital shall be blocked in inventory ofworking capital shall be blocked in inventory offinished goods.finished goods.


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&'(ER&'(ER

+lso e&pects from a buyer that$ +lso e&pects from a buyer that$

$$ 1rders placed contains correct1rders placed contains correctspecification in unambiguous terms.specification in unambiguous terms.

$$ 0urchase terms are clear and not very0urchase terms are clear and not very

stringentstringent on cancellation of 0urchase 1rderson cancellation of 0urchase 1rders

Timely clarifications to any of supplier!sTimely clarifications to any of supplier!s

queries.queries.


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&'(ER&'(ER

+voidance of unnecessary re4ections +voidance of unnecessary re4ections

6espectful treatment to seller!s representation6espectful treatment to seller!s representation

when they visit buyers place.when they visit buyers place.

"utual understanding and recognition of each"utual understanding and recognition of eachother!s requirements.other!s requirements.

buyer- seller relations

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