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There are many benefits of such a relationship, and a few risks as well.  However, the risk might be easily overcome through a proper planning process with your preferred customer.  In fact, many large buyers often expressed interest in having preferred relationships with their suppliers because of the following benefits:

 

Benefits:

 

• Higher degree of customer loyalty
• Increased efficiency of order transactions
• Ability to pass cost savings to the customer
• Ability to quickly service the customer's needs
• Improved overview of procurement processes
• Ability to take create similar relationships with other buyers by creating shared interfaces and connectivity with other buyers
• Ability to customize products for your preferred customers
• Other opportunities resulting from software systems development, such as use of web research venues and financial planning software
• Development of e-procurement software packages for SMEs
• Potential uses for demand planning and forecasting

 

Potential Risks:

 

• Potential high up-front costs
• Possibility of different data standards for each customer, requiring multiple interfaces (multiple interfaces are usually a minor expense)
• Lack of data transmission standards, therefore requiring e-procurement partners to use the same standards or build interfaces to communicate
• Lack of compatibility among software available for e-procurement
• Lack of availability of e-procurement software for SMEs