Buyer Supplier Relationship Analysis (A Case Study of C.V. CS)

Abstract

The purpose of this research is to discover the factors that shape the relationship between C.V. CS as buyer and the suppliers in order to determine the most appropriate strategy to manage the relationship. This research uses quantitative method and exploratory factor analysis approach. The population of this research consists of 30 suppliers of C.V. CS. Saturated sampling is used as sampling technique in this study. Additionally, the entire population is used as respondents. Research results suggest a new factor which can be considered as a simplified version of the six research variables of communication, trust, capacity and capability, relationship continuity, dependence and commitment. This factor is called strategic partnership. Strategic partnership is considered as the most suitable strategy for C.V. CS to establish a relationship with their suppliers. The findings of this research also indicate that strategic partnership can act as relationship builder between buyers and suppliers. In order to create a perfect strategic partnership, the five forming elements must be fulfilled.