Changing the balance of forces in the supplier-consumer pair

Abstract

Building long-term and mutually beneficial relationships between suppliers and consumers is one of the important issues considered when studying the commercial activities of industrial enterprises and, in particular, the procurement process of goods, works, services which are necessary for the smooth and rhythmic functioning of production complexes.The article provides a classification analysis of the relationship between the parties in the “supplier-consumer” pair from the standpoint of assessing their business activity and bargaining power, four main groups are identified and characterized by signs: active, passive, strong, weak.Further, the main elements of the new market reality for suppliers and consumers, formed under the influence of the consequences of the coronavirus epidemic and the sanctions imposed on Russia, are analyzed. As an important effect of the events taking place, the strengthening of the bargaining power of suppliers, the increase in the degree of their influence on the price conjuncture of commodity markets was noted. Based on a functional analogy (a linear function is used in the consideration), it is shown how suppliers shift their noticeably increased costs to buyers, who, in turn, due to inertia, are not immediately ready to accept the new realities. The search for alternative options to meet the needs is currently much more difficult. All this leads to a delay in the negotiation process, lengthening the deadlines for the implementation of projects, reducing the efficiency of production and economic activities. The solution of emerging problems cannot be fast, requires intensive communication with potential suppliers from friendly and neutral countries, as well as active involvement of industrial consumers in import substitution processes.