The supplier-buyer relationship
/ contract continuum
Spot Regular Call-off Fixed Partner- Joint Internal
purchase trading contracts contracts ship ventures provision
ITC M4:U3:3.1-1
, Select the best overall deal at the time of purchase
Focus on price
No personal relationship
Expect low priority & low motivation from supplier
Using many different suppliers will involve high costs
Good for one-off requirements
Good for standard products with low switching costs and
when annual expenditure is high
ITC M4:U3:3.1-2
, Repeated spot purchases
You need to ensure that the supplier remains competitive
Frequent interaction will lead to mutual understanding
Suppliers used frequently tend to give you higher priority - you
may also have one “preferred supplier”
Good when you don’t know requirements in advance and/or
when each requirement is different
ITC M4:U3:3.3-1
/ contract continuum
Spot Regular Call-off Fixed Partner- Joint Internal
purchase trading contracts contracts ship ventures provision
ITC M4:U3:3.1-1
, Select the best overall deal at the time of purchase
Focus on price
No personal relationship
Expect low priority & low motivation from supplier
Using many different suppliers will involve high costs
Good for one-off requirements
Good for standard products with low switching costs and
when annual expenditure is high
ITC M4:U3:3.1-2
, Repeated spot purchases
You need to ensure that the supplier remains competitive
Frequent interaction will lead to mutual understanding
Suppliers used frequently tend to give you higher priority - you
may also have one “preferred supplier”
Good when you don’t know requirements in advance and/or
when each requirement is different
ITC M4:U3:3.3-1
