Customer Supplier Relationship

Posted in Operations and Supply Chain Terms, Total Reads: 11393

Definition: Customer Supplier Relationship

Customer Supplier Relationship is the business relation between the customers and the suppliers in terms of product quality, services, complaint handling, deliveries etc. Customers and Suppliers are the vital cogs in business. Both have the same goal- to satisfy end consumers. Hence, having a healthy Customer- Supplier relationship is imperative for any business.


If we look at, from the suppliers’ end, the relationship is based on the following factors:

1. Sensitivity to customers’ needs

2. Satisfaction

3. Innovation

4. Finance


From the customers’ end, the relationship is based on the following factors:

1. Timely payments

2. Personalization of the relationship

3. Flexibility

4. Share information


Customer Supplier relationship is of great importance in quality management across organization and should be maintained at all levels of supply chain. It should ideally be a win-win situation for both parties in order to make it a long term and trustworthy alliance.


To further strengthen this concept, Dr. Ishikawa proposed 10 principles of a healthy Customer Supplier relationship. The principles highlight independence, flexibility, information exchange and maintenance of quality.


Hence, this concludes the definition of Customer Supplier Relationship along with its overview.

Browse the definition and meaning of more terms similar to Customer Supplier Relationship. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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