Long-term contracts imply stronger relationships with fewer suppliers.

Question

Quizplus · Accepted Answer

Long-term contracts are often used to establish stronger relationships with suppliers since they provide a sense of stability and predictability for both parties. When a company commits to a long-term contract with a supplier, it typically means that they trust the supplier and plan to continue working with them for an extended period of time. As a result, long-term contracts often lead to closer and more collaborative relationships between buyers and suppliers, with a focus on continuous improvement and mutual benefit.

Long-Term Contracts Imply Stronger Relationships with Fewer Suppliers