Q: 4
[Contractual approaches in supplier relationships]
Sugar Doughnut Ltd has a jam supplier that they have used successfully for over ten years. They have
made investments in the supplier’s factory to support them with capital equipment upgrades in
return for cost reduction on jam. The two companies also collaborate on bids for large supermarkets
when looking to supply doughnuts and work together on quality improvements. No contracts exist
between the two companies. Could this relationship be said to be a partnership relationship?
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