Types of Organizational Relationships

The types of organizational relationships that may be formed by a firm are included are supplier and customer partnerships,lateral relationships and internal relationships.Relationships are both internationalization.Now shown in types of organization relationships:

1.Supplier Relationships:

 Moving products through various stages in the value added process often involves linking suppliers,manufacturers,distributors and consumer and business end users of goods and services into vertical channels.For example,wholesalers stock products in inventory and deploy them when needed to retailers,thus reducing the delays of ordering direct from manufacturers.

Strategic suppliers-

Relationships with suppliers are often managed by a company's procurement function. However,when a supplier has a major impact on the company's value offering and its relationships with its own customers,the supplier may be regarded as strategic.In some situations,managing supplier relationship management systems closely linked to customer relationship management systems may be mandated.

Outsourcing-

The outsourcing of activities,such as transportation,repair and maintenance services, information systems and human resources functions,has become widely used in recent years.

2.Intermediate Customer Relationships:

Intermediate customers may include marketing intermediaries and producers assembling products for the end use market.Vertical relationships also occur between producers and marketing intermediaries.Value chain relationships provide access to consumer and organizational end users.

3.End user Customer Relationships:

The driving force underlying strategic relationships is that a company may enhance its ability to satisfy customers and cope with a rapidly changing business environment through partnering.For example,Boeing involves airlines and even passengers in design choices for its air frames.

4.Internal Partnering:

Internal partnerships may occur between business units,functional departments and individual employees.The intent is to encourage and facilitate cross functional cooperation rather than specialization.Key internal processes such as new product development benefit from cross functional cooperation in areas such as research and development,marketing,purchasing, finance and operations working together to identify,evaluate,develop and commercialize new product concepts.

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