Contract negotiations play a crucial role in shaping supplier relationships and influencing organizational efficiency. This review explores the impact of contract negotiations on supplier relationships, drawing on key theories and frameworks that enhance understanding of their role in fostering collaboration, trust, and long-term value creation. Effective contract negotiations are essential not only for securing favorable terms but also for aligning both parties' goals, ensuring transparency, and mitigating potential risks. The review begins by examining foundational theories, such as Transaction Cost Economics (TCE) and the Resource-Based View (RBV), to explain the dynamics of supplier negotiations and the resulting impact on organizational performance. Transaction Cost Economics emphasizes the cost-effectiveness of contracts in minimizing risks and uncertainties, while the Resource-Based View highlights the strategic importance of leveraging supplier resources to create competitive advantage. The integration of these theories offers insights into how organizations can structure contracts to align supplier capabilities with their own strategic objectives. Furthermore, the review explores several frameworks, including the Win-Win Negotiation Framework and the Collaborative Contracting Model, that focus on creating mutually beneficial partnerships between organizations and suppliers. These frameworks stress the importance of open communication, joint problem-solving, and shared value creation, which contribute to stronger supplier relationships and enhanced operational efficiency. The study also addresses the challenges organizations face in contract negotiations, including power imbalances, differing expectations, and cultural differences, which can hinder relationship development and negatively affect performance. Strategies for overcoming these challenges, such as focusing on relationship-building, negotiating for long-term commitments, and adopting flexible contract terms, are discussed. This review contributes to the understanding of how contract negotiations can be leveraged to build robust supplier relationships that foster organizational efficiency and sustainable success. By applying the theories and frameworks presented, businesses can enhance supplier collaboration, reduce transaction costs, and achieve better outcomes from their supplier relationships.