The Case Against Purchasing Partnerships

Abstract

Partnerships are frequently presented in purchasing literature as a generally applicable, universally desirable solution to the problem of sourcing strategy choice. This article argues that although this conclusion may be valid for large corporations, it is inappropriate for the majority of smaller companies that make up the bulk of activity in any economy. On the contrary, it is suggested that the effort to form partnerships will frequently be met by supplier indifference or resistance, and the strategy itself is high risk, high cost, and necessarily involves purchasers in an undesirable net loss of power.

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