From relationships to partnerships—new forms of cooperation between buyer and seller

An increased focus on operational performance and the reliance on fewer suppliers by industrial customers call for a higher quality of buyer–seller relationships.This article elaborates on economic explanations for value generated partnerships and describes the distinctive qualities of partnerships as something more than ordinary customer relationships. Particular attention is paid to the managerial implications and pitfalls awaiting companies when pursuing a partnership approach and a definition of vertical partnerships is provided.