Procurement glossary / A

Arm’s Length Relationship

A label sometimes given to normal commercial relationships between buyer and supplier who either are independent or act independently. The term implies that there is limited goal congruence, there are few mechanisms to promote joint working or collaboration and that interactions are primarily focused on the exchange of purchase orders and invoices, rather than the exchange of designs, future plans or strategies which would be more consistent with a cooperative relationship. See also Supplier Relationship Management.

Put the term to work

Definitions are the easy part. Talk to us about applying them in your procurement function.

Discuss your procurement priorities