A Framework for the Alignment of Buyer and Supplier Relationships

In this chapter a framework is provided to allow managers to understand how to align business relationships between buyers and suppliers under different power circumstances. The chapter is divided in two sections: The first section provides a brief summary of the six value appropriation outcomes that can occur between a buyer and supplier in any relationship.The second section provides, for each of the six theoretically possible value appropriation outcomes, a template to allow managers (whether they act as buyers or suppliers) to understand how to align their strategic ends with operational means. The aim is to indicate how both parties to the exchange should align their respective commercial goals, given the current and future power balance between the buyer and supplier.