Buyer-Supplier Relationship: A Metal/Mechanical Sector Case Study

Buyer-supplier collaborative or partnerships relationships are terms that have been used to designate closer and long-term dyad relations where risks and benefits are shared implying both economic and social involvement. The relationships between a Brazilian buyer which is the world leader in the hermetic compressor market and five metal/mechanical sector suppliers are characterized in this study. Results show that relationships have become closer and many practices and characteristics of a partnership can be observed but there is no concern regarding strengthening the relationship itself. The analyzed context also shows a dyad that is mainly affected by the buyer´s perspective, i.e. keeping a broad number of suppliers for each product, the supplier´s high investment in assets to meet buyer requirements, and short-term relationships, which stress the focus on economic goals.