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174 CHAPTER 5 • PuRCHAsing And suPPly sTRATEgy
In such an alliance, partners are expected to cooperate – even to the extent of shar-
ing skills and resources – to achieve joint benefits beyond those they could achieve by
acting alone. Figure 5.10 identifies some of the major elements that contribute to the
closeness that is necessary for partnership and divides them into those that are primar-
ily related to the attitude with which the customer and supplier approach the relation-
ship, and those that relate to the actions undertaken by both parties.
Closeness
Closeness is the degree of intimacy, understanding and mutual support that exists
between partners and reflects the degree of interdependence of the partners. An anal-
ogy is often drawn between the concept of closeness in business relations and how
the word is used in personal relations. Interpersonal intimacy relies on the attitude
with which individuals approach the relationship with their partner/friend, and is
also affected by an accumulation of individual actions. Both are important. Intimacy
relies on each partner’s belief in the other’s attitude and motivation in maintaining
the relationship. It is that belief that helps dispel any doubt that we can rely on sup-
portive actions from our partner. But it is also those actions that, over time, deepen and
enhance the positive beliefs and attitudes concerning the relationship itself. In this
way, closeness can be seen as the result of, and the objective of, the interplay between
attitudes towards the relationship and the ongoing activities that are the day-to-day
manifestations of the relationship.

Trust
In this context, trust means
‘the willingness of one party to relate with another in the belief that the other’s
actions will be beneficial rather than detrimental to the first party, even though this
cannot be guaranteed’. 9

Figure 5.10 Elements of partnership relationships

Trust
Long-term Sharing
expectations success
Joint Attitudes Multiple
learning points of
contact

Closeness of
relationship
Joint
coordination Few
of activities Actions relationships
Joint problem Information
solving transparency
Dedicated
assets

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