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This work is focused on small‐ to medium‐sized manufacturers (SMMs) within supply chains and, in particular, on how such SMMs develop effective working relationships with customers. Development of a model based on the literature was followed by a mail survey, augmented by semi‐structured interviews with SMMs. Factor analysis and multiple regression analysis were used to provide an understanding of the underlying processes.

This paper details a preliminary study into the impact of different supplier‐customer relationships on the performance of manufacturing companies in the clothing industry. This study produces three generic models for supplier‐customer relationships and their corresponding practices, which in essence represent three different levels of supply chain integration. It also develops a set of financial and non‐financial performance measures in order to determine the effectiveness of different types of relationship. A detailed survey was carried out in order to test the theoretical models and compare the performance of companies under the different types of relationship. Results are presented which compare the effect of various forms of supplier‐customer relationships on company performance, using data collected from 38 UK clothing manufacturers.