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Antecedents and Benefits of the Preferred Customer Status in a Buyer-Supplier Relationship: A Case Study at Atlas Copco and Three of its Key Suppliers

Schmidt, Felix (2014) Antecedents and Benefits of the Preferred Customer Status in a Buyer-Supplier Relationship: A Case Study at Atlas Copco and Three of its Key Suppliers.

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Abstract:In recent years, the concept of being a preferred customer of a leading supplier and the resulting competitive advantage for the buying company has received increased attention from scholars and practitioners. However, the current scientific literature is dealing with the preferred customer status from a theoretical perspective. Drawing results from a multiple case study at Atlas Copco Gas and Processes, this study presents the antecedents and benefits of the preferred customer status from a practical point of view. In addition to the practical confirmation of a large number of theoretical aspects, it provides various new and unexpected antecedents and benefits. Besides other factors, High order quantities, long-term relationships with the customer and open communication and information sharing were established as important drivers of a preferred customer status. Company reputation and brand name, as well as fair treatment outside of existing agreements have been identified as additional motivators for assigning the preferred customer status. These elements have not been mentioned in the body of scientific literature before. Therefore benefits of the preferred customer status described in scientific literature, such as better market prices, special support in construction, and priority attention have been confirmed. Other new benefits are no penalties for late payments and the availability of a dedicated production planner from the supplier.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/65244
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