In this assignment, we will focus only on relationships between buyers and suppliers, as these are the most important elements in supply chain management. 'supply. Creating and managing effective relationships at every link in the supply chain is one of the keys to success in business. Due to unpredictable market trends and demands, retailers will face market volatility and diversity which has encouraged them to establish relatively flexible relationships with multiple channel partners to reduce dependence on the supplier (Melody et al). Based on research by David and Mehmet. (2008), buyer–supplier relationships can be defined as the degree to which parties in a dyad engage in joint problem solving and benefit sharing. The benefits of maintaining good relationships include improved outcomes in new product and service development through resource synergy, faster time to market through concurrent design, long-term cost reduction such as reduced transaction costs, improved technology adoption process and environmental compliance, risk has been reduced, compliance risk has been improved and capital investments have been reduced. In addition, a cooperative relationship between buyers and suppliers will bring certain benefits. Supply chain management includes actions related to process integration, collaboration and information sharing and normally leads to high levels of customer satisfaction. Additionally, it leads to improved performance in terms of quality, costs, flexibility and delivery. With the improvements, operational performance will become better when suppliers engage with the buyer and this will change the perception of suppliers in terms of engagement, loyalty and longevity. Therefore, buyers can put pressure on the supplier's commitment and...... middle of paper ...... process and product results, which agree with the evaluation and comparison against to objectives, models, past results and with other processes and products. To evaluate the effectiveness and efficiency of supply chain performance, performance can be measured by financial and non-financial aspects. Financially, sales growth rate and profitability are commonly used financial performance indicators. For non-financial measures, it characterized the essence of flexibility and customer service in supply chains (Melody et al). Generally speaking, most interrelated aspects of the relationship between buyers and suppliers will affect supply chain performance. As a result, the examination of the key dimensions of the buyer and supplier relationship made it possible to summarize a clear framework for this mission with developed hypotheses..