In this assignment we will focus only on relationships between buyers and suppliers because these are the most important elements in supply chain management. Creating and managing effective relationships at every link in the supply chain is one of the keys to business success. 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 seller dependence (Melody et al). Based on the research of David and Mehmet (2008), buyer-supplier relationships can be known as the degree to which parties in the dyad are involved in joint problem solving and benefit sharing. The benefits of maintaining good relationships include better results in developing new products and services due to synergy of resources, faster speed to market through concurrent design, long-term cost reduction such as decreasing transaction costs, adoption process of technology and improved environmental compliance, reduced risk, improved compliance risk and reduced capital investment. Furthermore, a cooperative relationship between buyers and suppliers will give some advantages. Supply chain management includes actions related to process integration, collaboration, information sharing and normally leads to high levels of customer satisfaction. Furthermore, it leads to improved performance in terms of quality, costs, flexibility and delivery. Thanks to the improvements, operational performance will improve when suppliers engage with the buyer and the perception of suppliers in terms of commitment, loyalty and longevity will change. Therefore, buyers can put pressure on the supplier's commitment and... middle of paper... process and product results, which accept evaluation and comparison in relation 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 in financial and non-financial terms. From a financial perspective, sales growth rate and profitability are commonly used predictors of financial performance. For non-financial measures, it characterized the essence of flexibility and customer service in supply chains (Melody et al). In general, most aspects related to the relationship between buyers and suppliers will influence the performance of the supply chain. As a result, the review of key dimensions of the buyer-supplier relationship has been summarized in a clear framework for this assignment with hypotheses developed.