SCM 301 Study Guide - Final Guide: Transaction Cost, Business Process, Determinant

• School: Iowa State University
• Department: Supply Chain Management
• Course: SCM 301
• Professor: All

Document Summary

Logistics relationships: vertical versus horizontal relationships. Vertical: traditional links between sc members (make sure relationships help to achieve firm and sc objectives) Horizontal: firms with parallel or cooperating positions in sc, such as transportation firms and warehousing firms serving the same customer: intensity of involvement: arm"s length, partnership, strategic alliances. Vendor= seller or provider of product, so no integration with buyer (relationship is transactional and parties to vendor relationship are. Strategic alliances= full integration and collaboration (relational) Partnership= customized relationship that results in better outcomes than could be reached separately (collaborative) Developing successful supply chain relationships: main stages of the process model for developing relationship. 1: perform strategic assessment- manufacturer becomes aware of its logistics and sc needs and overall strategies that will guide operations. 2: decision to form relationship- if the firm has core competencies in area that external supplier provides, then firm can provide own service. 4: select partners- made only after close consideration of credentials.