Practical Aspects of the Interaction Between the Supplier and the Consumer During the Russian Economy's Transitional Period
The article analyzes the practical aspects of the interaction between supplier and consumer during the ongoing transitional period of the Russian economy. It says that many companies try to increase the total amount of their cost savings by using functional sourcing and procurement. To earn a profit, the paper suggests, forward-thinking companies have to strengthen their relationships with suppliers and also develop strategic business practices. Other benefits likely to accrue to companies carefully managing their relationship with suppliers include controlling long-term supply and demand; giving the supplier a significant place in strategic planning; and providing the consumer with less expensive goods. The document covers the complete process of supplier-consumer interaction, ranging from the choice of receiving the product provider to the actual project. It then discusses how beneficial interaction might eventually lead to cost savings, efficiency of performance and even rapid return on investment.