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Compared to traditional supplier relationships, a more strategic view of supplier relationships would require:
Compared to traditional supplier relationships, a more strategic view of supplier relationships would require maintaining communication based on trust.Trust is a key factor that enables effective collaboration, information sharing, problem solving, and innovation between supply chain partners12.Trust can also reduce transaction costs, conflicts, and opportunism, and increase commitment, loyalty, and performance34. Therefore, maintaining communication based on trust is essential for developing and sustaining strategic supplier relationships that can create value and competitive advantage for both parties.
The other options are not necessarily required for a more strategic view of supplier relationships, because they are either insufficient or irrelevant. Offering the supplier more business may increase the volume or frequency of transactions, but it does not guarantee a more strategic or long-term relationship. Adopting electronic data interchange (EDI) may improve the efficiency or accuracy of information exchange, but it does not ensure a more collaborative or innovative relationship. Implementing concurrent engineering may enhance the product design or development process, but it does not address the other aspects of a strategic relationship, such as quality, delivery, or risk management.