Ford (1980) presents five stages in buyer seller
relationship evolution. They are pre-relationship, early
stage, development, long-term, and the final stage. In the
early stage lack of commitment and uncertainty in the
relationship prevails. In the early stage of relationship
uncertainty is high, distance between supplier and buyer
usually high, perceived and actual commitment is also found
to be low. The time investment of management I this stage
remains high. Cost saving and negotiation is found to be
low and sample based. In the development stage uncertainty
slowly reduces, distance between buyer and supplier also
reduces, commitment level from both the parties started
increasing. Contract signing, large scale ordering and
formal adaptations becomes a part of relationship. In the
long term relationship stage uncertainty becomes, minimum
and institutionalization development takes place. Perceived
commitment reduces and actual commitment becomes,
maximum. Major purchasing and large scale delivery takes
place along with cost saving measures. In the final stage
of relationship extensive institutionalization takes place.