Professional Documents
Culture Documents
Supply Chain Management (3rd Edition)
Supply Chain Management (3rd Edition)
(3rd Edition)
Chapter 17
Coordination in the Supply Chain
Relatively Interdependence
High
Powerful Effective Relationship
Organization
Low Level of Relatively
Low Interdependence
Powerful
Low High
Partner’s Dependence
© 2007 Pearson Education 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