Supply Chain Management, Partnership, and the Shipper ‐ Third Party Relationship

The paper begins with an overview of some of the forces that have shaped supply chain management and partnership relationships. Next the potential benefits and risks of involvement in supply chain management/partnership relationships are discussed from the perspective of both the shipper and the service provider (warehousers and transportation firms). Results from a major survey of shippers, warehousers and transportation providers are used to illustrate the risks and benefits. Means of minimizing the potential risks are also suggested. The paper concludes with a discussion of issues in supply chain management that would benefit from further analysis and research. These issues include determination of whether a firm should use a supply chain management approach, the management structure to use in supply chain management, and modelling supply chain management systems.