V. Shilpa, S. Geethanjali, Dr. Sd. Mansoor Pasha
Abstract: Vendors are usually rated based on their performance by the firm, however, a good buyer organization allows its vendors to rate them too. This can be basically done to have an effective feedback on the performance of a firm towards its vendor. A good vendor base ensures that the end customer’s requirements are met quantitatively and qualitatively. There are various parameters that a firm may want itself to be rated on and those were brainstormed and finalized. This paper aims to explore the construct of vendor satisfaction as a factor of buyer–vendor relationship quality. Vendor satisfaction is defined as a vendor' s feeling of fairness with regard to buyer organization’s incentives and vendor' s contributions within an industrial buyer–seller relationship. Vendor satisfaction as a complex construct is operationalised through an index, and its determinants are measured using a survey.
Keywords: Vendor, profitability, vendor value chain, SME, vendor satisfaction