Vendor Satisfaction: An empirical study of vendors of engineering companies in Pune industrial area

In the present competitive market manufacturing companies will always look for more market share by satisfying customers to their expectation. In today's market situation, customer will buy the product if it is worth & value for money. Now to create value for customers companies have to concentrate on their manufacturing so that expected quality should be manufactured in minimum possible cost. For cost effective manufacturing one of the important resource, materials has to optimize. Now for reliable sources of material company should develop reliable vendor base, which will help the company to compete in market, by using materials as a strategic tool. Company will always look for synchronize and well coordinated supply chain which is impossible without healthy relationships between suppliers and manufacturer.

Vendor satisfaction is one of the crucial point which is utmost important for such a coordinated supply chain which will ultimately ensure the continuous source of materials with shared benefits between suppliers and manufacturer. If vendors are happy with the kind of trade they are having with the manufacturers, only then they will fulfill the manufacturer's expectation which will lead ultimately to customer satisfaction.

This paper will help to understand the relationship between the manufacturer and its suppliers in detail. For any manufacturing organization it becomes utmost important to satisfy all the stakeholders if they wish to run business in a long run. The paper will focus on impact of key issues between manufacturer and its suppliers like credit facility, technical & financial assistance, training programs, vendors get-together, inventory policies of manufacturer, inspection and rejections, sharing of information and so on.