Partnering of Suppliers and Customers

Introduction Partnering is the development of good and effective strategic relationships (Loraine 1993, p. 13). This is mostly between suppliers and customers. The main aim of partnering is to have a sustainable competitive advantage. In partnering, various stakeholders are supposed to transform their businesses while embracing various relationships and processes. They can also embrace leadership and better ways of communication through good business practices.Advertising We will write a custom report sample on Partnering of Suppliers and Customers specifically for you for only $16.05 $11/page Learn More Transformation in partnering should be done as a joint activity (Loraine 1993, p. 15). Framework contracting on the other hand is an agreement with different suppliers. The main aim of framework contracting is to establish different terms that will be used to govern contracts (Schein 1985, p. 9). These contracts can be awarded over a given period of time . The terms that govern these contracts are normally established in regard to quantity and price. In a broad perspective, framework contracting sets out the terms and conditions that will guide the agreement. Partnering and framework contracting complement each other in a broad way. This is because they are used to come up with good conditions under which more collaborative ways can be enhanced between contractors and their clients (Schein 1985, p. 9). Framework contracting and partnering can encourage a close correspondence in business dealings. This therefore yields a scale of improvements. In addition, they are inclusive and imprecise concepts that capture a wide range of attitudes. Partnering captures the spirit of cooperation that is needed for a successful contract. Framework contracting and partnering are used when stakeholders want to develop a good strategic partnership (Child 1984, p. 11). Partnering and framework contracting come up with broad based contractual commitment s that can be used for long term strategies. Discussion A project in construction is an activity that has specific conditions, a budget, responsibilities, goals and a plan. Projects should have a starting date and an end date. There are various parties that are involved in projects. These parties have diverse interests that are supposed to be taken care of. There are various aspects that are involved in project management and enforcement (Child 1984, p. 18). This ensures that activities are carried out in the most effective way. For a project to be successful, it must have a good plan. This will ensure that things are done in the most efficient manner (Pheysey 1993, p. 17). In a broad perspective, all aspects of the proposed project are supposed to be explored for sustainability. Projects have various advantages and disadvantages. Proper project implementation can improve the quality of a product. This is because projects have a time frame and plan by which they are supposed to be e xecuted. Projects can bring about an improvement in team productivity because they involve various stakeholders with a common goal (Pheysey 1993, p. 19). This means that various interests will be satisfied as a result of the project. As much as companies should bid for good projects through partnering and framework contracting, management tasks can end up being an overhead to the success of the project.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This therefore means that projects need a lot of attention and commitment. On the other hand, diverse interests and goals can frustrate a project. This will be brought about by distinct missions and objectives. Strategic partnering can be said to be structured collaborations between organizations. The main aim of strategic partnering is to take advantage of emerging market opportunities (Green 1995, p. 14). Strategic partnering is meant to res pond to customers more effectively and efficiently than one could have done in isolation. Apart from sharing skills and resources, partnering can also allow partners to share risks. There are various advantages of strategic partnering. Strategic partnering can bring about an improvement in a company’s cash flow (Green 1995, p. 18). This can also reduce overhead costs in one way or the other. Strategic partnering can also act as an avenue to access technology and facilities. Through partnering, a company will be able to improve its credibility and capital flow. This strengthens relationships with suppliers and customers and in the long run reduces costs. There are various disadvantages that come about as a result of strategic partnering. For instance, there might be various barriers to future financing opportunities (Latham 1994, p.9). This can end up with the foreclosure of other important business opportunities. For strategic partnering to be successful, partners should clea rly assess themselves. This is because there might be unexpected disappointments and headaches. Strategic partnering can also bring about a lot of distractions because of the commitments that bind partners together. Framework contracting can be described as an agreement with different suppliers (Latham 1994, p.9). The main aim of framework contracting is to establish different terms that will be used to govern contracts. These contracts can be awarded over a given period of time. The terms that govern contracts are normally established in regard to quantity and price. In a broad perspective, framework contracting sets out the terms and conditions that guide agreements. As a matter of fact, it has various advantages. Advantages will mostly be seen in the outsourcing of goods and services. In addition, it will be able to develop good strategic relationships that can be used to advance a company’s long term objectives. Framework contracting in a broad way enhances processes with in an organization and its partners (Bresnen 1990, p. 14). This means that it can be used as an interesting option for sustainability. In addition, there will be better avenues of evaluating and monitoring initiatives. Disadvantages arise from the assessment of various outcomes. This means that there will be problems in assessing success (Bresnen 1990, p. 18). Framework contracting can lead to an increase in prices that will be used to compensate for additional costs.Advertising We will write a custom report sample on Partnering of Suppliers and Customers specifically for you for only $16.05 $11/page Learn More These will likely scare away potential partners and investors. It also has a disadvantage of bringing about additional enforcement mechanisms (Argyris . Schà ¶n 1978, p. 21). Framework contracting can be used to come up with good conditions under which more collaborative avenues can be enhanced between contractors and their clients. Collaborativ e contracts can be used to ensure that work is done in a more effective way. These contracts are mostly agreements that are used to enhance good relationships. They can be trade agreements, lease agreements and rental agreements. A trade agreement is a contractual arrangement that defines various trade relations. These agreements are meant to reduce barriers and enhance trade (Green 1995, p. 18). Trade agreements increase the value of commitments amongst various partners. Enhanced protection will increase economic gains as a result of these agreements. Trade agreements allow for free movement of capital and services. These agreements have various weaknesses. For instance, they increase the cost of trade and business. On the other hand, they might also cause problems among various partners (Latham 1994, p.16). A lease agreement is a commitment that guides the relationship between the owner of a property and the person who is leasing it. It is a contract that outlines the conduct of t wo different partners (Argyris .Schà ¶n 1978, p. 21). Lease agreements can help the collaborators to save on costs (more so the person who has leased). In this case, they will also build a good working relationship that can be used to enhance skills (Latham 1994, p.19). Some of these lease agreements can increase costs. This can involve various levels and types of insurance coverage. There can be weaknesses in the validation process of lease agreements. A rental agreement can also be termed as a lease. This is where the asset is a tangible property. This agreement defines the conduct of various parties involved (Brown 1995, p. 9). In addition, it has a stipulated period under which it will be considered valid. Such agreements if well enforced can save on costs. There are various weaknesses in accounting and disclosure of income. This should be dealt with to ensure that there are no organizational challenges. Every business can be engaged in a new contract every now and then. As a m atter of fact, there might be problems with the interpretation of clauses. This can mostly be seen in oral contracts (Roe 1996, p.23). Oral contracts can be either unilateral or bilateral. Litigation issues can also arise in the interpretation of various clauses.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In addition, new contracts can also have multi-tiered clauses. Such a problem can potentially demand for additional time to interpret different clauses (Roe 1996, p.23). This will ultimately increase the time needed to enforce a given contract. Conclusion Coherence in partnering should be seen as a strategy in business. On the other hand, there are numerous organizational and economic factors that can either inhibit or encourage partnering. There are various differences between the rhetoric and reality of partnering. In a broad perspective, partnering can deal with lack of integration and fragmentation that have in numerous occasions defined important features of an industry. Partnering and framework contracting complement each other in a broad way. This is because they are used in coming up with good conditions under which more collaborative ways can be enhanced between contractors and their clients. Framework contracting and partnering can encourage a close correspondence in busin ess dealings. In addition, they are inclusive and imprecise concepts that capture a wide range of attitudes. Partnering captures the spirit of cooperation that is needed for a successful contract. Framework contracting and partnering are used when stakeholders want to develop a good strategic partnership. Partnering and framework contracting come up with broad based contractual commitments that can be used for long term strategies. Reference List Argyris, C. Schà ¶n, A., 1978. Theory in practice. San Francisco: Jossey Bass Bresnen, M., 1990. Organizing construction. London: Routledge. Brown, A., 1995. Organizational culture. London: Pitman. Child, J., 1984. Organization. London: Harper Row. Green, R., 1995. Partnering and alliances: theory and practice. Richardson TX: Society of Petroleum Engineers. Latham, M., 1994. Constructing the team. London: HMSO. Loraine, R. K., 1993. Partnering in the public sector. London: Business Round Table. Pheysey, D. C., 1993. Organizational cultur es. London: Routledge. Roe, M., 1996. Partnering: the legal aspects. London: Masons Solicitors. Schein, E., 1985. Organizational culture and leadership. San Francisco: Jossey Bass. 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