Working Relations Research Fundamentals
A Systemic Model
Supplier Working Relations and Buyer1 Profits.
1. Buyer refers to supplier’s customer. 2. Purchasing agent refers to purchasing personnel who interface with suppliers sales personnel who has commercial responsibility for the goods/services sold to the buyer.
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Working Relations Index®
The Working Relations Index® (WRI®) methodology is a quantification of suppliers’ qualitative working experiences with a single company (Buyer) to whom they provide products and/or services. The WRI® result is expressed as a single metric and represents the degree to which collaborative supplier working relations are present.
In early 2014 it became increasingly apparent that there was something more than just the Relational Activities impacting buyer-supplier relations. After a year of research PPI identified and corroborated the presence of two sets of Foundational Activities that are associated with collaborative supplier relations as measured by the WRI®.
Contribution to Profit
Results of our newest study, OEM Profitability and Supplier Relations, show that most manufacturing companies could significantly improve their profits – some by hundreds of millions of dollars — simply by improving their supplier relations. The results are determined by a unique economic model developed by Planning Perspectives that proves and predicts a direct cause-effect relationship between an OEM’s supplier relations and the OEM’s profitability.