Strategic Supplier Partnership: A Source of Competitive Advantage

This study tries to determine the status of supply chain management along strategic supplier partnership among the hardware and construction supplies’ enterprise operating in Naga City, Region V, Philippines. It aims to identify strategic supplier partnership practices in the retail industry and its relationship to obtaining competitive advantage through price and cost, value to customer, and delivery dependability. In a highly competitive retail market environment, strategic supplier partnership can be an instrument of building maximum competitive advantage. A qualitative research approach was used to explore specific data with greater understanding of their context through an unstructured key informant interview aided by an open-ended questionnaire. A purposive sampling was used as there were 72 registered stores but only 7 maintains warehouses with independent logistics and inventory management system. Significant findings were: (1) hardware companies rarely engage in strategic partnership with itssuppliers; (2) there is a positive relationship between strategic supplier relationship and competitive advantage; (3) there is a need to revisit supply chain strategies in improving competitive opportunity and harnessing relationships among different units within the supply chain. The result of the study is a benchmark to validate other components of supply chain management and whether these supports competitive advantage that is held within the supply chain. Propose to local government a framework that will support logistics processes through strategic supplier partnership that can provide a sustainable ecosystem.

Keywords – Delivery Dependability, Price and Cost, Supply Chain, Value to Customer.