Increased efficiency – As the frequency of material requirement in the project is increasing rapidly, it helps the buyer to establish the friendly relationship with the supplier. It also helps in developing the better understanding of the clients, market and the business process. Greater integration of the business is increased along with greater stakeholder involvement. A gray area is mostly reduced along with the improvement of services. Outsourcing – the uncritical activities which can be outsourced to avail better benefits render more capability to develop the relationship among buyer-supplier. It helps the buyers in harnessing the particular product, and reduction in the internal workloads to increase the efficiencies.
Integration helps in reducing the supplier number, formation for more smooth and effective supply chain. Reduction in the internal loads can provide opportunity in minimization of costs through scale economy (Mathur, 2008). The supplier-buyer relationship can be defined by the transactions which are commercial in nature means selling and purchasing products and services. The dealings of the inter-organizational have been eminent in the procurement of the materials. The various field of management has shown interest in building such type of relationship, due to the need in the changing conditions of the business. Benefits of developing supplier-buyer relationship are accepted globally. The treatment of a supplier with courtesy helps in procuring the best products and services at affordable costs. Supplier probability of responsiveness in the critical times is also increased.