Which of the following can have a detrimental effect on supply-chain relationships? Select TWO.

Effective supply chain relationships are built on collaboration and mutual benefit. Mistrust is fundamentally detrimental as it undermines the willingness of parties to cooperate, share information, and invest in the relationship, leading to adversarial dynamics and increased monitoring costs. Similarly, a lack of feedback creates a communication vacuum. Without constructive feedback, suppliers cannot align with buyer expectations or improve performance, and buyers cannot address issues effectively. This leads to performance degradation, unresolved conflicts, and eventual relationship failure. Both factors directly erode the foundations of a healthy, productive partnership.

B. Low spend: This typically categorises a relationship as transactional rather than strategic. A transactional relationship is not inherently detrimental; it can be efficient and appropriate for non-critical items.

D. Market segment: This is a characteristic of the external business environment. While it can influence strategy, it does not, in itself, have a direct detrimental effect on a specific buyer-supplier relationship.

1. Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. This foundational paper establishes that trust is a key mediating variable essential for successful relational exchanges. On page 23, it posits that trust is central to relationships and that its absence leads to conflict and dissolution. (DOI: https://doi.org/10.1177/002224299405800302)

2. CIPS Body of Knowledge. (2019). Theme: Sourcing and Contract Management, Section 5.3: Supplier Relationship Management (SRM). The official CIPS guidance emphasizes that successful SRM is built on "trust, mutual respect, and open and honest communication." It explicitly identifies a lack of trust as a barrier to collaboration and value creation. It also highlights two-way performance measurement and feedback as critical for continuous improvement and maintaining relationship health.

3. Handfield, R. B., & Krause, D. R. (2000). Avoid the pitfalls in supplier development. Sloan Management Review, 41(2), 37-49. The article discusses that a core element of successful supplier development and relationships is direct, honest, and timely feedback. The absence of this feedback is identified as a major pitfall (p. 42), preventing suppliers from understanding buyer needs and improving, thereby damaging the relationship.

4. Lysons, K., & Farrington, B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. In the chapters covering Supplier Relationship Management, the text differentiates relationship types (e.g., transactional, collaborative). It clarifies that low spend often corresponds to a transactional approach, which is a valid strategy, not a detrimental factor (Chapter 11). Conversely, trust and communication (including feedback) are presented as essential "enablers" for any positive, value-adding relationship.