Close relationships between and among supply chain members are becoming more prevalent. However, there is lack of agreement in the literature and in practice concerning the characteristics of different interorganizational relationships. The resultant confusion is an obstacle to the progression of research and could cause problems among firms in a supply chain. Based on previous research and an exploratory study conducted with company executives responsible for supply chain management activities, this article seeks to introduce the concept of relationship magnitude (i.e., the extent or degree of closeness or strength of the relationship) and differentiate it from relationship type (i.e., classes of relationships that share common traits). Implications for managers and opportunities for future research are provided.
How can a third-party logistics (3PL) provider decide whether or not there is a viable opportunity to serve the needs and desires of potential clients? To answer this question, a tool is needed that can help determine if there are problems, inefficiencies, or needed improvements in a client's, or a potential client's, supply chain that the 3PL can effectively address. Most diagnostic tools currently in use in supply chain analysis are large, quantitative, and time-consuming. This paper describes a qualitative diagnostic tool designed for more rapid analysis. The research and managerial implications of this tool are also discussed.
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