Customer Supplier Relationship

Published by MBA Skool Team, Last Updated: January 22, 2018

What is 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.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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