ABSTRACT
Supply chain leaders understand that the link between positive relationships with suppliers and improved corporate performance is a strengthening rather than weakening one. Companies that fail to develop positive relationships may nd their suppliers allocating limited capacity to other rms, sharing their most innovative ideas with other customers, or exiting an industry segment altogether, all of which will lead to increased risk. As our research clearly shows, becoming the preferred customer to suppliers o©ers advantages that are not as readily available to other customers, advantages that could lead to future competitive advantage and reduced risk.1 As one executive summed up clearly during a research interview, “Becoming a preferred customer is going to be one of the best ways we have to manage supply chain risk in the future.”
