What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

Conflict in a buyer-supplier relationship often arises from transactional friction and perceived inequity. Persistent late payment (A) directly impacts the supplier's cash flow and signals a lack of respect or financial instability, severely damaging trust. Unequal sharing of gains, risks, and costs (B) undermines the collaborative foundation of a strategic partnership. If a supplier feels they are bearing a disproportionate amount of risk or cost without a fair share of the rewards, resentment will build, leading to conflict and a potential breakdown in the relationship. Both issues violate the principles of fairness and reciprocity essential for long-term commercial success.

C. Requesting early supplier involvement is a collaborative practice aimed at improving design and reducing costs, which typically prevents conflict.
D. Planning scheduled visits to the supplier site is a positive relationship management activity that builds trust and understanding.
E. Scheduling agreed supplier delivery dates is a fundamental and cooperative part of contract management, designed to prevent misunderstandings.

1. CIPS. (2019). Commercial Negotiation L4M5 Course Book. Profex Publishing. Chapter 7, 'Managing Commercial Negotiations', Section 7.4 'Sources of Conflict', identifies financial issues and perceived unfairness as key conflict drivers.

2. Johnston, R., Clark, G., & Shulver, M. (2012). Service Operations Management: Improving Service Delivery (4th ed.). Pearson. Chapter 11, 'Managing supply chain relationships', discusses how poor payment practices and unbalanced risk/reward sharing create conflict.

3. Cousins, P. D., Lamming, R., Lawson, B., & Squire, B. (2008). Strategic Supply Management: Principles, Theories and Practice. Pearson. Chapter 6, 'Managing Relationships and Power', explains how opportunistic behaviour, such as late payment or unfair cost allocation, leads to relationship conflict.