Literature Review Sample

<P>Literature Review Sample<BR>2.0   Introduction<BR>This chapter aims to present a Literature Review of the Supplier Relationship Management and Relationship Quality which will look at its evolutionary development, and identify current trends and practices within this field in regards to creating an effective Supplier Relationship Quality elements model. Much of the literature reviewed discusses best practice Supplier Relationship Management (SRM) and Relationship Quality (RQ) from a business perspective. This literature also looks at the global procurement environment and how it affects the designs in supplier relationship.<BR>2.1 Supplier Relationship Management<BR>The origin of the Supplier Relationship Management (SRM) is procurement management and supplier management. Since the industry product occurred in the human’ life, the procurement had been existed, the accumulation about the theories and practices of procurement management and supplier management have formed a perfect system. But the procurement was highlighted to the strategic status by people in recently years. Spekman & Hill (1980) firstly advanced the concept of strategic procurement, they emphasized treating the procurement from the composite perspective, procurement should be considered as the field of adding value, not only the field of reducing the expenditure, the corporations should heightened concern the strategic expense of the supply rather than its short-time price, the active participation of suppliers can not only save money but also for the strategic development of enterprises of great significance.<BR>Ellam(1991), Stuart(1993), Graham(1994), Landeros(1995), Hendrick(1995) et had made the definition of supplier cooperative partnership: somebody thinks that this cooperative partnership is a relationship that the suppliers and purchasers share information, risks and profits for achieving certain objective; but some people consider that this partnership is a long-term cooperative relationship based on the mutual trust. All of them point that the supplier cooperative partnership is a relationship having the sharing of weal or woe which is based on the same objective and emphasize the importance of the commitment and efficiency in protecting and optimizing the cooperative relationship.<BR>Lehmann (2000) make a definition of supplier relationship management from a technical perspective as that: supplier relationship management is a automotive application system where the whole process of planning, producing, delivering and payment is sure between the suppliers and manufacturers. The supplier relationship management system can not only make tracks for the information change and common business contacts between corporations and suppliers, but also can provide a analytical tool to know the historical references, the contact situation and performance of suppliers.<BR>Jonh.A (2001) separated the relationship between corporations and suppliers into three phases: convince, negotiate and joint. In the phase of business beginning, the producing and procurement of corporations did not fully separate, and the procurement was not formal, which was mainly divided into two kind of procurement, one was the parts procurement with demanding large amount and price, the other was the procuring parts with high technology and high value which were needed to be customized through discussing with the suppliers. Corporations and their suppliers establish a typical demand-based trading relationship need to convince the suppliers. On the one hand, corporations need to palter with suppliers who provide the standard products and services for convincing suppliers to provide low cost products. On the other hand, corporations needed to convince these big and skilled suppliers to provide them customizing services. When the corporations came into the second phase, corporations had rational and scientific development, a