In today’s world, relationship has immense value for all organizations. The status of relationship is not limited to the internal partners alone, but the thinking is much beyond that. Supplier is an important partner in any organization, and hence, maintaining relationship is important for an organization who is an industrial buyer. Considering supplier as a part of the organization, it is a crucial task for the organization to build a relationship between the buyer and supplier because the status of relationship depends upon the operating practice of the organization. In other words, we can say that the relationship model must fit with the organization’s operation system. This paper explores customer and supplier relationships from the perspective of Small and Medium Enterprises (SMEs). A critique of supply chain literature highlights some key problems when such theory is applied to understanding the purchasing behavior of SMEs. This paper sets out an alternative rationale for exploring what SMEs ‘do’ in terms of building a buyer-supplier model.

In today’s dynamic world, buyer-supplier relationship is of utmost importance. In many instances, the relationship of suppliers and buyers is not prominent. The dedication and commitment between the buyer and supplier in many cases are not focused. They view each other as adversaries and do not consider the overwhelming benefits of working together.

In an organizational setting, the importance of buyer-supplier relationship is essential for the better performance of the organization. Relationship not only strengthens all aspects of development, but also enhances productivity and image of the company. Hence, the buyer, irrespective of industrial as well as household needs, has some kind of attachment towards the organization and product. Therefore, the capability of building the buyer-supplier relationship denotes the capability to enhance the organizational capability. It also improves the synergies among suppliers and buyers and ultimately develops the trust, confidence and motivation.

A company must be cautious while evaluating its potential suppliers. Such a review could start with a questionnaire concerning the company’s business practices, employee benefit information and facility information. This must be through judicious planning and recommendation of the employees who are involved. Then the suppliers are selected and observed for a specific time before being acknowledged.

In a successful partnership, a win-win situation is important for some level of satisfaction of both partners. It must be accompanied by mutual respect and clear understanding. The value of business responsiveness is another important parameter for consideration.

Supply Chain Management Journal, Retail Analytics Using SAS, Analytical Processes, Retail Industry, Statistical Techniques, Product Inventory, Customer Satisfaction, Market Segmentation, Marketing Programs, Marketing Mix Models, Econometric Models, Inventory Management System, Marketing Campaigns, SAS Data Mining Software.