ABSTRACT
The results of this study show that the ability to apply ABM to suppliers is affected by the existence of long-term relationships and willingness to share sensitive information, both signs of partnership-type relationships, but that it is not affected by the frequency of communication with the supplier. This leads to a number of conclusions. As companies look to employ more accurate systems of managing their supplier costs, it will be necessary for them to develop these partnerships. Coming from the opposite direction, as companies develop partnerships with their suppliers to manage issues such as delivery and access to special technologies and skills, they will have a greater opportunity to try employing ABM to their supply chain and reduce their costs and their suppliers’ costs as well. Frequency of communication may have been too broad an indicator of partnerships when compared to sensitive information sharing and longterm relationships; it is just an important general requirement for business, partnership or not.
