Large vendor’s capability and relationship management: An idea of winning contract mechanism in B2B

Organizations, big or small, spend money to keep up with their business operations. This requires them to deal with many other business units called vendors/suppliers to help them with necessary input resources for their business operations. In Business-to-Business transactions, organizations deal with each other to purchase goods and services. These associations work on long-term business relationships. Vendor organizations hire sales teams and relationship managers to work with the client organization in order to maintain healthy business relationships. Purpose is to compare these two factors - sales person’s relationship and Vendor’s capability to check which of the two factors influences the awarding of contracts from the clients.

The study has been conducted by observing B2B commercial transactions and how organizations engage with each other in B2B purchases. The study focuses on interviewing buyers from different companies, varying in employee size from 200 employees to over 10000 employees, randomly selected and recording their responses. The data was then tabulated and processed to check normality and outliers and the correlations of the parameters studied, which helps validate our hypothesis drawn for the comparative study between Salesperson relationship and vendor capability.

There is a relationship that exists between the vendors and big organizations purchase decisions. It is the vendor organization as a whole that has built its capability and experience over the years has been successful in maintaining business relationships with the client.

Researchers found the link and compared Sales person relationship and vendor capability, and check the correlation between the two factors also, the influence of each of these factors in winning sales contracts.