Olsen and Ellram (1997b) have developed a three-step portfolio to assist in managing different kinds of supplier relationships. According to the portfolio model, the firm’s purchases have to be analyzed first. Secondly, current supplier relationships are studied to the find how the supply and purchasing tasks are managed. Thirdly, current supplier relationships are compared to the ideal situation. The key classification dimensions are the strategic importance of the purchase and difficulty in manging the purchasing situation. The factors of strategic importance are competence,economic and image.