Is Long Term Relationship Supplier Considered Significant By Indian Commercial Vehicle Industry?

Abstract

Indian Commercial vehicle Manufacturers exist in a competitive environment wherein only the manufacturer with best product and competitively priced can retain / grow their market share. In order to achieve this objective Buyers of Commercial vehicle manufacturer selects suppliers who can provide competitive price and premium quality. Once a supplier is selected, buyer of Commercial vehicle manufacturer evaluates whether the supplier can become a long term relationship supplier. Similarly the supplier try to become a long term relationship supplier with commercial vehicle manufacturer so that they can have mutually beneficial business. In this paper, analysis is done if Long term relationship is considered as a significant factor in commercial Vehicle Industry and factors which are considered more important in that relationship are analysed. Study has been conducted with respondents both from Buyers of commercial vehicle manufacturer and Suppliers (in Buyer’s point of view). It was observed that Buyers give importance  to  Mutuality, Long term orientation, commitment  and Innovation  whereas from Supplier point of view Mutuality , commitment, Informal socialization and commitment are considered as important factors in Long term relationship.