ABSTRACT
There is a need for a better understanding of the transaction costs in supplier relationships, supply chain issues, and the role of emerging technologies in sourcing decisions since the COVID-19 pandemic. Using transaction cost economics as a framework, the purpose of this qualitative descriptive study was to explore how decisions regarding supplier selection are made in a modern manufacturing corporation and to describe existing ongoing relationships with suppliers. Sixteen directors in manufacturing firms in the U.S. took part in interviews or a focus group. Five themes emerged: (a) use of procurement program for efficient management, (b) technology adaptation for wider and better sourcing, (c) engaged in crisis response strategies during the pandemic, (d) engaging in proper planning for risk mitigation after the pandemic, and (e) collaborating with reliable suppliers for mutual benefits. Participants decided to adopt the use of procurement software, which streamlines sourcing processes, improves supplier tracking, and minimizes human error.
However, human oversight remained crucial for supplier negotiations and contract management. Companies began to prioritize operational continuity over adherence to strict supplier standards. Adaptation included sourcing from suppliers using e-sourcing platforms, rerouting shipments, and adopting proactive risk management strategies. Maintaining supplier relationships, prioritizing long-term partnerships, and mutual growth were also discussed. Findings underscore the critical imperative for contemporary manufacturing firms to integrate digital procurement infrastructures, cultivate resilient and trust-based supplier networks, and leverage digital platforms to achieve greater sourcing diversification.
Keywords
Supplier Relationships, COVID, Sourcing, Contractual Relationships