The most important concepts in the business-supply chain relationship Essay

The most important concepts in the business-supply chain relationship - Essay Example For example, the supply chain of an automaker is different from that of a consumer electronics goods manufacturer, meaning their infrastructure also contrast (Oliveira and Gimeno 29). Suppliers in the automotive industry must have adequate capital and facilities to provide materials at competitive prices, and these materials are unique to that industry. On the other hand, automakers should have the capacity to store and process these materials to develop the product and then sell it through the distribution networks. Suppliers and producers must observe relevant legal requirements in their specific industries to avoid attracting punitive measures that would handicap their capacity and freedom to operate (Oliveira and Gimeno 54). Industry-specific legal and regulatory requirements must be observed by both parties, or their relationship would be compromised by interruptions and constraints. For businesses, social and working conditions are part of company policy regarding employee welfare and the employer-employee relationship. They are also closely related to the labor policies of whichever countries they operate in. In recent times, there have been reports of employee maltreatment involving poor working conditions, extremely low wages, and lack of employee rights, especially among suppliers (Stadtler, Kilger, and Meyr 42). Large companies like Nike have been accused of working with rogue suppliers who do not respect labor rights, and this has damaged their reputations. As such, businesses and supply chains must demonstrate adherence to ethical practices and respect for labor laws. This involves communication and operational efficiency. To keep the supply chain running optimally, suppliers must communicate with their partners at various levels and ensure that all processes run seamlessly. There has to be good communication between businesses and suppliers, to reduce