Value managed relationships in procurement strategy

The goal of value managed relationships (VMRs) is to establish and maintain close relationships with a reduced supplier base in order to assure a reliable stream of on-time delivery of defect-free material. VMRs represent a partnership approach to procurement, where a series of supplier-manufacturer-customer relationships are established, resulting in higher quality and lower costs. VMRs are discussed with reference to negotiation in a teamwork relationship, the importance of suppliers, implementation, and measurement and feedback. It is concluded that VMRs have shown positive results at both the business unit and the corporate level. VMRs are a strategic part of the quality improvement process (QIP), and its success is a necessity for the other leg of the QIP, which is just-in-time manufacturing.<
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