Procurement is very much important for the organizations and it is also a significant part of the buyer-supplier relation. Procurement is used for safe and sound goods, services and works from outside sources. It is also a gaining process (Chick and Handfield, 2015). The outer source must be suitable that assist the management of the organization with a solution to their difficulty. Following that choice, price or cost requires being satisfactory. Huge public and corporate organizations like to promote option and greater competition with procurement and gaining programs. Choice and superiority go a long way in business. In the end, everyone can benefit.
Outsourcing is a performance in the buyer-supplier management. The organizations carry out their activities, supply services and produces products for additional frim roles that could have been done in-house by the performance of the outsourcing. Outsourcing is a general trend in the information technologies and other industries. Outsourcing is naturally used by organizations to save costs (Germeten, 2016). Businesses outsource for services that are seen as an important aspect of organizations and also help internal and external customers. In a few cases, the whole information management of an organization is outsourced, such as planning and implementing projects and strategies, technology, human resources etc.
The success of the business in the present era depends on the long term relationship with the supply chain partners. It can only be attained if there is understanding of the mutual gain. The relationship can only be successful if an individual efficiency and effectively communicates its own views and perception to other by using different communication techniques. It can only be efficient when the buyers get transparency on projected and available offerings (Mahajan, 2008). Globalization has brought organizations under pressure for improving the product’s quality, process quality, performance and service quality. Organizations are continuously exploring the ways for making the efficient supply chain by concentrating on the relations with the suppliers. Firms are utilizing the resource available to increase the supply chain which enables them to be more reactive towards the demands. Outsourcing is also offering an alternative opportunity for exploiting the capabilities and the expertise of the suppliers. The relationship within the workforce provides an added advantage to the organization. Relational communications provide a way in contributing to the product segregation and creating barriers to switch to different providers and buyers. At present, small and large organizations are finding strategies to develop the relationship with the suppliers. The benefits for the buyer in the development of a healthy relationship with suppliers help him to access the improved quality at lower cost. In the first stage, it leads to betterment in product quality and innovation, along with increased market share (Jenster, 2005).