A Practical Discussion of Buyer Supplier Relationship Development

Abstract

Every organization engages in buyer-supplier transactions to obtain materials and services to operate its business. Each pair of buyers and suppliers involved in such transactions develops a relationship between the two parties. This paper provides a framework for understanding how these relationships develop and for developing relationship strategies. Key variables are defined and a temporal relationship process model is provided. The findings of theoretical papers are translated into a form that practitioners will find useful. Using practical scenarios, the model framework is put into a practical perspective that can be applied at any stage of the buyer-supplier relationship process.