Close, cooperative relationships are a double-edged sword in that the gains realized from close supplier contact can be offset by losses in autonomous decision making. Factors that indicate the level of cooperation and communication between trading partners grow and then decline over the various stages of the trading life cycle. Interestingly, the fundamental factors that describe a close, cooperative trading relationship appear to follow a traditional life-cycle curve. Not only does this finding add credence to the notion that trading relationships have life cycles, but there are certain inferences that can be drawn from supplier management strategies. It appears, for example, that during the declining stage of the relationships buyers perceive a disintegration of goal compatibility.
Buyers appear to select PRPs who can contribute to production and process efficiency.
Noticeably absent among the 10 key supplier characteristics are such factors as local presence, leading-edge research and development capability, innovation, and expertise regarding either a buyer's products or customers. Key supplier characteristics appear to endure over the various stages of the relationship life cycle. The salience of key supplier characteristics appears to be related to market conditions. Buyers report, for example, that the supply market from which they purchase is somewhat stable, fairly mature, and very price- competitive. Buyers have fewer expectations regarding their PRPs' technical or market-related expertise.