Buyer‐Supplier Co‐operation, Product Quality and Total Costs

Abstract

While the purchasing literature notes the importance of quality, it reports little empirical study into causes and consequences of supplier product quality. Develops, tests and finds empirical support for the following propositions: higher levels of buyer‐supplier co‐operation lead to higher product quality, and lower total costs; higher product quality yields lower total costs. These results are based on survey responses from over 500 members of the National Association of Purchasing Management (NAPM), who purchase components for manufacturing firms.