Chapter 11

Within the win-win partnership dyad, buyer and supplier share goals as well as inherent risks through joint planning and control, seeking to create a supply chain with increased information flow and enhanced loyalty. Like the overall goal of supply chain management, such coordination allows for ________________________.

All of the above

Conflict can be defined as tension between two or more social entities... which arises from _______________________.

incompatibility of actual or desired responses

Though ___________ has received abundant recognition over the last few decades from both researchers and practitioners alike, the concept of a __________ is perhaps as old as or even older than business itself.

partnering/ partnership

A final point on the effects of power concerns the ultimate ______________ of the supply chain members as well as the supply chain itself.

performance and subsequent profitability

Exploration of the effects of _______ on factors of the supplier buyer alliance provides the key to understanding the concept of the power-partnership link...

power

The relationship between _______________ is dependent upon the origins of the commitment.

power and commitment

________ is a direct result of dependence, and the extent of dependence is directly induced by _____________ of power.

power/ perceptions

Extremely complex in nature, ________ serves as a composite relationship-oriented variable, affecting both the ______________ in many transparent as well as concealed ways.

power/ target and source

The notion of ______ in an interfirm relationship implies _______ dependence on the source; otherwise the _______ would not need to subject itself to the unbalanced relationship.

power/ target/ target

The objective of a drastically ____________ base precludes an acceptance of supplier partnerships because a firm must accept dependence upon _____________ before they can internalize legitimate forms of supply chain management and supplier partnerships.

reduced suppliers/fewer suppliers

Guides to the implementation process are summarized below, with one exception. Which one is not one of the steps?

reward partnership for superb quality and service

The first step in the supplier partnership implementation process includes the strategic verification of the need for a supplier partnership. Here, the firm must evaluate the potential ____________ of a partnership in comparison to traditional processes.

risks and benefits

Ultimate supply chain partner __________ remains the overriding factor in determining the future of a supply chain partnership.

satisfaction

__________ in the supply chain can be defined as the extent of contentment with the relationship.

satisfaction

The notion of interfirm power holds its roots in ______________ literature and has been extensively developed by marketing channel researchers.

social science

Although many firms engage in partnering activities, the specific interpretation of a ___________ or partnership is at best vague.

strategic alliance

Also termed a __________, a supply chain partnership is a relationship formed between two independent entities in supply channels to achieve specific objectives and benefits, and it is these partnerships that form the essential building blocks of _______________ management.

strategic alliance / supply chain

Critical to the implementation of purchasing and supply management techniques is the development of _________________.

supply chain partners

Abandonment of partners may lead to __________, making future partners _________ to attract.

suspicion/ difficult

Power essentially attempts to force a _______ to comply with the ________ desires, and, like commitment, the level of compliance and more importantly cooperation are critical to the relationship tenure as well as profitability.

target/ sources

As defined by Maloni and Benton: the power of a supply chain member [is] the ability to control the decision variables in the supply strategy of another member in a given chain at a different level of the supply chain. It should be different from the influenced member s original level of control over their own supply strategy.

true

While many firms have sought ___________ through acquisition to harness supplier expertise, some argue that _____________ can provide similar benefits without the necessity of ownership and arduous exit barriers.

vertical integration/ partnerships

And like supply chain management, _____________ extends beyond a simple interfirm relationship to involve integration of confidential and vital processes such as strategy formation, planning, information flow, and operations.

buyer-supplier partnering

___________ is nothing more than a form of compliance as well as identification and _________.

commitment/ involvement

__________ is action without inherent desire, and, thus, _________ remains a relatively easy factor to measure since it implies action, not feeling.

compliance/ compliance

Ideally, the end result for both firms should be _____________, yielding greater control of costs, cycle times, inventory, quality, and, ultimately, customer satisfaction.

decreased uncertain

With its many benefits, supply chain partnerships retain several inherent risks that can be potentially damaging to participants. First and foremost, heavy reliance on one partner can be disastrous if the partner _____________.

does not meet expectations

The final step in the partnering process includes the maintenance of the relationship to ______________________________.

either enhance its development or bring about its dissolution

Recognizing partnerships between buyer and supplier, as a fundamental driver for the success of the Pacific Rim supply chain processes, American firms have begun to _______________.

emulate these supplier alliances

Performance may be defined as the ability to ________________.

execute intentions and goals

Before firms can enjoy the benefits of a buyer supplier partnership, they must first develop and design the partnership implementation process. A supplier partnership involves a significant attitudinal as well as structural change from traditional supply arrangements, so the allying firms must be meticulous to ensure that a true win-win partnership is developed.

false

Ultimate dissolution of the partnership may be necessary if the firms are able to successfully work through the critical steps of partnership formation or synergies can be recognized.

false

A rule of thumb must be developed that can be used to decide whether or not a partnership _____________.

has sufficient potential

Conflict is present in the supply chain when one supply chain member ________ goal attainment and performance of another. Conflict is an omnipresent factor in any supply chain relationship.

hinders

Two factors driven by power and critical to the partnership dyad are commitment and trust. Trust may be defined as the perception of being emotionally impelled.

False

Partnerships move beyond special influence transactions by involving efforts of both firms to coordinate functional activities. The three tiers listed below show how partnerships can be segmented based on the intensity and duration of the leadership. Tier I partnerships entail short-term, single-function/division coordination. Tier II partnerships extend coordination to integration and encompass multiple activities over a longer time span. Tier III partnerships dilate into significant levels of operational integration.

True

Over recent decades, firms within the supply chain have begun to realize the advantages enjoyed from sharing of technology, information, and planning with other firms. Even competitors, and many modern business thinkers will claim that not only is a more open and relational attitude advantageous, but actually essential and inevitable in maintaining ___________________.

a competitive advantage

Despite the differences in opinions about the size of the supplier base, the major issue remains that a closer relationship with suppliers facilitates

a reduced number of suppliers

Some supply managers argue that implementation of many new manufacturing techniques necessitates _______________________.

a reduction in the number of suppliers

Drivers of satisfaction within supply chain partnerships include relationship-oriented factors such as _________________.

all of the above

Supply chain partnerships bridge the barrier between buyer and seller, leading manufacturers to ________________.

ally with a reduced supplier base

A Harvard Business School study concluded that a key driver in the decline of U.S. competitiveness in the international marketplace has originated from investing _______________, such as supplier relations.

less in intangible benefits

Once a partner is selected, the establishment of the actual relationship provides the critical step in which the partners must create a complete sense of awareness about the ______________ of all involved parties.

needs and participation