English to Russian Tech/Engineering Economics supplier relationship structures

Shown in Figure 2-11122 are five types of supplier relationship structures, based on the “asset specificity” to the buyer’s core competency of the product supplied by the supplier. The most commonly found type of external contractual relationship is the adversarial leverage, where the customer has a choice of suppliers, and the suppliers have no strategic advantage in terms of ownership of the part manufactured. Further up the scale of asset specificity are preferred suppliers who supply products of medium asset specificity, however with low strategic importance to the customer123. The single source relationship is for parts that have fairly high sensitivity to the core competency of the firm; however the buyer wants to minimise transaction costs without having to vertically integrate. Where the supplier holds key expertise and without vertically integrating that supplier, this relationship is known as network sourcing. Finally strategic alliances or commonly known as joint ventures are where both the supplier and the customer have some Intellectual Property Right on the product.