Required Capabilities in a Logistics Relationship - A Case Study

This paper studies a newly developing relationship of closer collaboration between a buyer and supplier of a low complexity product, which cannot be considered strategic but of high
volume, in the grocery retailing industry, The reason for studying this relationship is that the buyer has decided to go through with is program aimed at establishing is closer relationship with the supplier in the case despite not being a strategic supplier. Because of this, the relationship will be one aimed at reducing the costs between the two parties involved in this paper termed a logistics relationship
The purpose of this article will be to identify’ the new necessary capabilities required by the supplier in a co-operative relationship of the type described in the article. The findings display the need for the supplier to manage dij55i’rent areas in order to be a successful supplier. Since the relationship is SO focused on reducing costs, the capabilities become focused on reducing costs. Reducing costs within one ‘s own organisation is of course required, but this is not new Instead, what we see in this article is the need for the supplier to come up with ideas and improvements for the customer business and reduce their costs.
In this article, we have seen that it is no longer just enough to deliver products in a timely fashion and to work internally on continuously reducing cost. In order for a supplier to stay competitive, the supplier in this case has to develop capabilities in the area of customer management. This means developing two distinct types of capabilities, one related to how to work with customers and one related to understanding how, we with our supply process can affect the indirect cost of customers. To be able to do this, the sales organisation will have is different role and develop new capabilities.