What is the practice of buying from suppliers that are also customers known as?

Question

Quizplus · Accepted Answer

The practice of buying from suppliers that are also customers is known as reciprocity. Reciprocity involves the mutual exchange of goods or services between two parties, where each party benefits from the other's business. This type of relationship can be beneficial for both parties, as it can lead to increased trust and cooperation, as well as better pricing and terms for both suppliers and customers. Reciprocity is different from a straight rebuy (B) and a modified rebuy (A), which involve purchasing decisions based on previous purchasing patterns or changes in requirements. Vendor analysis (C) is a process of evaluating potential suppliers based on their performance, capabilities, and other factors. While vendor analysis may involve considering factors such as a supplier's customer base, it is not the same as reciprocity.

What Is the Practice of Buying from Suppliers That Are