Suppliers Relationship at Pfizer Essay Example | Topics and Well Written Essays - 2000 words

Suppliers Relationship at Pfizer - Essay Example As of 3rd quarter of 2010, the company reported its total revenue of $16.2 billion despite the economic recession in some parts of the world (Pfizer, 2010 c). This figure is 39% more than the total revenue of Pfizer during the 3rd quarter of 2009. (See Table I – Comparison between Pfizer’s 3rd Quarter Revenue between 2009 and 2010 below) In the past, majority of the purchasers are searching for a wide-range of sources of raw materials provided that the supplier can offer the company the lowest market price for the same product (Gadde and Hakansson 1993, pp. 165 – 166). Today, purchasers are after the need to develop a long-term collaborative relationship with its suppliers in order to avail cheaper high quality raw materials (Chobra and Meindl 2001; Araujo, Dubois and Gadde 1999; Bensaou 1999). In relation to the business growth of Pfizer, this report wide-range of will discuss about the importance and ways on how to properly manage the supply side of raw materia ls by establishing a good relationship with its suppliers. Aside from discussing the different degrees of involvement in which Pfizer can establish good relationship with its suppliers, this report will discuss some strategies that will enable Pfizer maintain a strong and long lasting relationship with its accredited suppliers. Supplier relationship management has been a common practice in supply chain management of multinational companies like Pfizer. As explained by Wisner, Tan and Leong (2009, p. 95).