A good topic of Production and Operation Management

1. Presentation on SUPPLIER RELATIONSHIP Submitted by:- Nitika A-12 ShwetNisha A-14 Gourav B-48 Anup Kumar B-59 AbhishekArora B-61 Kshitij Kumar B-65

2. Introduction Started by online travel agencies which provides Cheap Flight Tickets, Hotels and Travelling Cars. Got started without the best relations with its suppliers. Barry Diller- Chairman of Expedia.com Paul Brown- President of Expedia North America

3. Relationship with Suppliers Dreadful Relationship with Suppliers. “Hotel Companies didn’t pay higher margins so wouldn’t get equal treatment on the site itself”, says Brown. This left only “Extremely Strained Suppliers Relationship”.

4. Schizoid Brands Different brands in different regions in 15 different group worked externally with suppliers. Several Suppliers threatened to quit. At the same time investors were paying extra attention to the supplier’s woes.

5. Idea of making new central “Partner Services Group”. Brown meets Country Heads, Account Managers and Hotel Representatives to set up a standard system in Company. Advantageous Overview

6. 3 years later, Supplier relationship have developed. 11,000 new merchant hotels added to Expedia inventory. Brown says ,“That would happen if we didn’t have the right types of relationships with our suppliers” Contd…

7. Expedia used empathy to think about its relationships with suppliers . Used Service-level agreement and contracts with Hotel chains. Expedia think it is highly important to have long–term relationship with your business-to-business partners. Empathy Relationship

8. Naming “Partner Services Group” instead of Suppliers group and give up some profit and loss transparency. Expedia communicated a philosophy of how it wanted to work with its suppliers. Importance of Name

9. This change of name shows how much care Expedia have to its suppliers. Contd…

10. Create real innovations with suppliers and treat them as a partner and treat them empathetically. This behavior change go beyond operational improvements and willing them to embrace the fact that they are partners. Conclusion