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Trusting Trust is identified by both the buy and the sell side as the most important attribute in a relationship, and the most important thing to achieve SRM success and real business benefit.
Figure 6.11. Importance of trust to the success of SRM – buy side
Figure 6.12. Importance of trust to the success of SRM – sell side
USEFUL 2%
NOT IMPORTANT 0%
USEFUL 2%
NOT IMPORTANT 0%
IMPORTANT 24%
IMPORTANT 26%
VERY IMPORTANT 74%
VERY IMPORTANT 72%
Through our ongoing dialogue with both buy and sell side companies, it has become clear how important trust is. Both parties want to be able to trust the other. There- fore this can only come about if both parties are not only trusting (of the other) but also trustworthy (reliable). Reliability is the key to becoming trustworthy. Trust underpins so many other key aspects of SRM it cannot be ignored. In 1998 Zaheer et al. defined trust in business relationships in three parts: 1. “The expectation that a party can be relied upon to fulfil obligations” 2. “They will behave in a predictable manner” 3. “They will act and negotiate fairly when the possibility of opportunism is present” There are many definitions of trust but the third part above must resonate more with supply chain relationships given the scope for opportunism on both sides throughout the life of a contract.
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