The idea of ​​strategic buyer-supplier relationships has gained considerable momentum and supply chain partners work together to mutually plan and execute strategic initiatives aimed at achieving the level of customer service satisfaction (Mohr and Spekman 1994). Buyer-supplier relationships focus on initiatives that improve interpersonal relationships among supply chain members and create a win-win situation for both buyer and supplier firms (Paulraj and Chen 2005). Instead of the old, independent, adversarial way of doing business with a large number of suppliers, companies are emphasizing close, cooperative collaboration with a limited number of trustworthy suppliers. Today, supplier contracts are long-term and suppliers share sensitive information about their quality performance, processes and costs with the buyer. It is suggested that a company would benefit from outsourcing more business to fewer suppliers using long-term contracts (Hahn, Pinto, and Brag 1983; Giunipero, Handfield, and Eltantawy).