In today’s complex and competitive environment, supply function becomes more a strategic differentiator and a core competency. This function is strongly related to relationship between buyer and supplier. In addition, buyer supplier relationships (BSR) have undertaken considerable changes during the last decade. Although previous empirical research has found the importance of identifying factors that influence BSR, the present paper analyses the factors influencing the successful relationship between buyer and seller. Based on the Interpretive Structural Modeling (ISM), the complex interrelationships between the established factors are inspected. Classification of factors has been carried out based on dependence and driving power by using MICMAC analysis. The present study highlights “Innovation and technology” and “Information exchange” as the most significant factors with high influential power for the BSR. This study aims to aid the decision makers (buyer or supplier) in evolving effective business strategies.