While price might be considered a motivating factor, it no longer can be considered the primary driver. Although there are complex managerial and cultural issues to resolve, there is no question that worldwide sourcing is a key to competitiveness, and the Pacific Rim countries are an important factor in the global sourcing equation. To this end, American buyers were surveyed about their trading relationship with one of their significant Pacific Rim suppliers. At the same time, the level of commitment is somewhat limited as buyers report that partners do not engage in specialized development or production without the guarantee of a sale. Thus, many of the advantages of close, cooperative supplier involvement are not realized.
Buyers appear to guard against developing a high degree of dependence on their PRPs.
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.