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3 Supplier Relations

3.1 Introduction

3.1.1 General

It is the intent of the Postal Service to establish strong, mutually beneficial relations with its suppliers in order to meet its business and competitive objectives. Postal Service purchases are intended to foster partnerships with suppliers in which both parties work toward a common goal. The nature of the partnership is determined by the potential impact of the supplier's performance on the Postal Service's competitive and financial position, and therefore some partnerships are closer and more interdependent than others. The type of partnership will also determine other aspects of the relationship, such as communications, purchasing method, performance incentives, and rewards for exceptional quality. Contracting officers must manage supplier relations to ensure that business and competitive objectives are met or exceeded.

3.1.2 Supply Chain Management

The Postal Service uses the supply chain management business philosophy and associated business practices to further its business and competitive objectives. In general terms, the supply chain is a series of business organizations working together to create and provide value to customers. Supply chain management is the analysis and adjustment of the purchasing process and supply stream as required to meet customer demand and lower overall costs.

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