chapter 4 answers to study questions

chapter 4 answers to study questions - chapter 4 answers to...

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chapter 4 answers to study questions ANSWERS TO STUDY QUESTIONS 1. What are the basic types of supply chain relationships, and how do they differ? Answer: Generally, there are two types of logistics relationships. The first is what may be termed vertical relationships; these refer to the traditional linkages between firms in the supply chain such as retailers, distributors, manufacturers, and parts and materials suppliers. These firms relate to one another in the ways that buyers and sellers do in all industries, and significant attention is directed toward making sure that these relation- ships help to achieve individual firm and supply chain objectives. Logistics service providers are involved on a day-to-day basis as they serve their customers in this traditional, vertical form of relationship. The second type of logistics relationship is horizontal in nature and includes those business agreements between firms that have “parallel” or cooperating positions in the logistics process. To be precise, a horizontal relationship may be thought of as a service agreement between two or more independent logistics provider firms based on trust, cooperation, shared risk, and investments, and following mutually agreeable goals. Each firm is expected to contribute to the specific logistics services in which it specializes, and each exercises control of those tasks while striving to integrate its services with those of the other logistics providers. Thus, these parties have parallel or equal relationships in the logistics process and likely need to work together in appropriate and useful ways to see that the customer’s logistics objectives are met. (Pages 109-110) 2. How would you distinguish between a vendor, a partner, and a strategic alliance? What conditions would favor the use of each? Answer: The range of relationship types extends from that of a vendor to that of a strategic alliance. In the context of the more traditional “vertical” context, a vendor is represented simply by a seller or provider of a product or service, such that there is little or no integration or collaboration with the buyer or purchaser. In essence, the relationship with a vendor is “transactional,” and parties to a vendor relationship are said to be at “arm’s length” (i.e., at a significant distance). While this form of relationship suggests a relatively low or nonexistent level of involvement between the parties, there are certain types of transactions for which this option is desirable, such as one-time or even multiple purchases of standard products and/or services. Alternatively, the relationship suggested by a strategic alliance is one in which two or more business organizations cooperate and willingly modify their business objectives and practices to help achieve long-term goals and objectives. The strategic alliance by definition is more strategic in nature and is highly relational in terms of the firms involved. This form of relationship typically benefits the involved parties by reducing
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This note was uploaded on 07/28/2011 for the course MKTG 4354 taught by Professor Nancyevans during the Summer '11 term at Virginia Tech.

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chapter 4 answers to study questions - chapter 4 answers to...

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