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Restoring Damaged Buyer-Supplier Relationships

Business relationships in highly competitive markets can quickly dissolve when a supplier causes a buyer financial loss.

To determine whether severed relations could be restored, Misty Blessley, John Aloysius and their co-authors tested a model relationship restoration.

They found that buyers were more likely to restore severed relationships when suppliers provided compensation for financial losses caused and offered operational transparency regarding how any future disruption would be handled. Simply acknowledging the mistake and showing a willingness to take responsibility was convincing to buyers.

When restoring buyer-supplier relations, Blessley’s research emphasizes the need to sincerely and concretely address the specific issues that led to separation.