Final answer:
Establishing a good relationship with vendors can benefit a firm by improving reputation, increasing customer satisfaction, and enhancing profitability.
Step-by-step explanation:
A good relationship with vendors can benefit the firm by establishing a good reputation and ultimately increasing profits. When a firm has a good relationship with its vendors, it can ensure better product quality and potentially negotiate better pricing. This, in turn, can lead to satisfied customers, repeat business, positive word-of-mouth recommendations, and increased profitability for the firm.