MGT 3300 Lecture Notes - Lecture 31: North American Industry Classification System
Document Summary
There are several key dimensions that characterize a close working relationship between organizational buyers and sellers. The buyer and seller work together to achieve both mutual and individual objectives. Both sides are involved in problem resolution. Both the supplier and the buyer benefit when they can share information. It includes the exchange of proprietary cost data, discussion of demand forecasts, and joint work on new product designs. It is fast and easy to update the information. It can lead to better decisions, reduced uncertainty about the future, and better planning. Even though shared information is useful, it may be risky if there is a possibility that one of the partners will misuse it. Aside from cooperation and information sharing, there are other key dimensions of close buyer-seller relationships in the b2b market. Operational linkages are direct ties between the internal operations of the buyer and seller firms. These linkages usually involve ongoing coordination of activities between the firms.
