Power and supply chain relationships.

This paper outlines the general theoretical approach adopted in the power regime perspective on sourcing and relationship management. The paper focuses on the art of the possible. This means that managers have to develop sourcing relationships that are appropriate given the circumstances in which they find themselves. To understand appropriateness it is argued that buyers and suppliers must understand the five sourcing choices available and the power circumstances that exist between them in supply chain networks. Only by understanding the power regime that exists can buyers and suppliers fully understand what is the appropriate way for them to manage relationships.