The Impact of Supplier-Manufacturer Partnership on Supply Chain Performance

Abstract

The researchers have always managed to explore new disciplines in the world, same has been the case with the field of management sciences, but devising new fields is not an easy task and it usually involves a lot of research and exploration (Sandberg, 2007). Supply chain management (SCM) plays a pivotal role for the firms in their efforts to stay competitive among many competitors, as the firms nowadays have become more competitive by efficiently relying on their supply chain (Irfan et al., 2008). Not only this, but the effective and efficient supply chain have become an important and valuable means of staying vigilant in the evolving competitive business world-wide and is considered a way for improving the organizational performance on the whole (Muhammad et al., 2013). The relationship established when a manufacturer and supplier reach a mutual agreement to work together based on a particular contract is called supplier-manufacturer partnership. The contract has all the details regarding the work which is to be done and is based on a pricing model which defines a time period by which certain expectations of the manufacturer are met. The study reveals that supplier-manufacturer partnership strongly effects the information and its flow, but if the information is managed properly and its quality is increased then it results in strong partner relations which leads to supply chain effectiveness and increased supply chain performance. It has been found out the supply chain integration strongly effects the supply chain performance of a firm, better the supply chain integration the better would be the performance of the overall supply chain.