What typically characterizes the relationships within a supply network?

In a supply network, active management by buyers is crucial for maintaining effective relationships. This management involves continuous communication, negotiation, and monitoring of suppliers to ensure that their performance aligns with organizational goals and standards. Active management helps to build collaborative partnerships, resolve conflicts, and adapt to changes in market conditions or supply chain dynamics.

Such relationships typically require ongoing engagement to foster trust and ensure that all parties are aligned in their objectives. Buyers who actively manage their relationships within the supply network can leverage innovations, mitigate risks, and enhance efficiencies that benefit the entire supply chain.

The other choices do not accurately reflect the nature of relationships within a supply network. Highly competitive environments might exist, but collaboration is often necessary. The lack of contracts could undermine relationship stability, and decentralized communication might lead to misunderstandings and inefficiencies in information flow, countering the benefits of active management.