Buyer Seller relationship and ethics
The modern business is based on the cordial relationship. Buyer and seller are the base of entire show. A cordial relationship-internal and external, with in the organisation and outside the organisation may prove effective in today’s complex market. Smooth running of the entire business is completely based on good buyer-seller relations,
Every buyer and seller knows and realise the importance of good relations in building goodwill not only for their own business organisation but of the whole economy. It brings prosperity to the society and the nation.
Responsibility of Purchase Department
The purchase department has a responsibility to establish cordial, relations with the suppliers If suppliers are good, they are supplying right quality in right quantity and at right time. The relationship will seldom spoil and will remain cordial.
In order to maintain cordial relationship, the purchase department should-
(1) Place an order with correct specification
2.to set out the terms clearly
3.to give instructions in clear term.
4.To specily the terms of payment in the order itself.
5.The buyer and Sellers are not adverse forces: The ducer. He can be a regular supplier and capable of improve
buyer knows the importance of a strong and healthy proment.
Similarly the seller also knows that his profit and
progress depends on his customers Buyers and sellers do not represent adverse forces in the modern society. They can not afford to be hostile. They are bound to maintain a
close and cooperative relations in order to satisfy the condition of the survival
No one scarifies his interest. But everyone is interested in other so that both of them may be benefited. For a buyer, a good and responsible seller is an asset and for a
seller, a technically equipped negotiator in the form of buyer is the base of progress.
When supplier fails. The tension between buyerseller relationship is created when the supplier fails to supply the ordered material in time and he attempts to make a
hackdoor selling. Both are against the supplier. A reasonable seller normally try to avoid delay and untimely delivery.
if he is not able to keep up his promise. it is better that he should inform the buyer and ask for some more time.
He should observe the code of conduct and business ethics according to the norms set by the policies and store the relationship.
principles It will help in avoiding backdoor selling and reWhen Buyer fails. It is not always that supplier fails and not it is the responsibility of seller only to maintain relationship. The buyer is also required to maintain a cordial relationship. The buyer is responsible for both supplier and the organisation. He should be honest, decent, fair, capable,cooperative, open minded, humble, energetic, and morally responsible. He should be capable of taking sound judgment, taking decision and handling affairs.
The buyer should not follow the reciprocity pressure because it may not prove good for good buyer-seller relations. A long time supplier may also be willing to take.
advantage of such reciprocity character and there is possibility of lacking in quality.
As a practice, reciprocity is undesirable and it should be controlled. A supplier is rarely a customer and vice-versa.
If reciprocity is practicsed, there will be a very small number of suppliers who will be available for Supplying the requirements. It is not sound for business organisation Cordial relationship with mutual understanding A cooperative and cordial relationship is much rewarding. It can be achieved by mutual understanding. It should not be taken as weakness of any party. A sympathetic negotiatein should be conducted. There should be full appreciation of each other’s viewpoint and neither party should feel exploited. The lasting coordial relations will be established in business for a longer period.