An aerospace company has a long-standing partnering relationship with a supplier to develop a new technology. This technology gives the buying organization a competitive advantage. Which of the following BEST describes this type of supplier?
A supplier that collaborates closely to develop new technology and provides a competitive advantage is best described as:
Approved: This generally refers to suppliers that meet basic qualification criteria.
Strategic: This term denotes a supplier with whom the company has a long-term partnership, often involving significant collaboration and integration, contributing to competitive advantages.
Transactional: These suppliers are engaged for routine purchases without significant collaboration.
Preferred: This status is higher than approved but does not necessarily imply a strategic partnership.
Given the context, the supplier is best described as strategic.
References:
Supplier relationship management literature.
Institute for Supply Management (ISM) guidelines on strategic partnerships.
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