Which term refers to the relationship in business focusing on the exchange of purchase orders and invoices without collaboration?

The term that describes the relationship in business focused on the exchange of purchase orders and invoices without collaboration is "Arm's-length relationship." This type of relationship indicates a level of detachment and minimal interaction between the parties involved.

In an arm's-length relationship, each party operates independently with the primary objective of completing transactions. There is no significant sharing of information, resources, or strategic goals. This transactional nature is characterized by a purely business-oriented exchange, typically seen in suppliers and buyers who do not seek deeper partnership or collaboration.

Understanding this term is essential because it highlights the differences between various types of business relationships, especially in procurement and supply management. While other types of relationships, such as collaborative or partnership arrangements, emphasize joint objectives and shared interests, an arm's-length relationship is distinctly focused on individual transactions and maintaining a professional distance.