Supply Chain Partnerships

Abstract

The boundary of a company SCN is shaped by the SCs of the industries in which it competes, but also by strategic decisions on what it should insource, outsource, or coproduce. This chapter studies these decisions and the impact they have on SCN structures, processes, and performances. It starts by examining the nature of inter-company relationships, and in particular the topology of dominant SC structures. Taking the point of view of a particular company, it then looks at the value-added services provided by primary SC partners, namely, suppliers, contract manufacturers, and third-party logistics providers. Finally, it presents an approach and a model to facilitate partner selection decisions and it discusses important issues related to the management of partnerships.