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Supplier relationships and the trade secrets dilemma.

International Journal of Purchasing and Materials Management

| June 22, 1996 | Budden, Michael C.; Jones, Michael A.; Budden, Connie B. | COPYRIGHT 1996 National Association of Purchasing Management, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

BACKGROUND

In recent years, the trend for purchasing to establish partnering arrangements that encourage close ties between purchasers and suppliers has taken some industries by storm. The partnering concept, while replete with benefits for purchaser and supplier alike, does raise a new issue which arises from the "open and sharing" arrangements inherent in the concept. One of these issues concerns the security for "trade secrets." Trade secrets are proprietary information about products, processes, research, and customer information that is not general knowledge, from which the owner derives an economic benefit.

The trade-secrets issue stems from the fact ...

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