Professional Documents
Culture Documents
(2nd Edition)
Chapter 16
Coordination in the Supply Chain
Relatively Interdependence
High
Powerful Effective Relationship
Organization
Low Level of Relatively
Low Interdependence
Powerful
Low High
Partner’s Dependence
© 2004 Prentice-Hall, Inc. 16-26
Creating Effective Contracts
Create contracts that encourage negotiation when
unplanned contingencies arise
It is impossible to define and plan for every
possible occurrence
Informal relationships and agreements can fill in
the “gaps” in contracts
Informal arrangements may eventually be
formalized in later contracts