Answer to Question 1
When the decision relates to using an external provider of logistics services (e.g., trucking firm, express logistics provider, third-party logistics provider), the first question is whether or not the provider's services will be needed. A suggested approach to making this decision is to make a careful assessment of the areas in which the manufacturing firm appears to have core competency. For a firm to have core competency in any given area, it is necessary to have expertise, strategic fit, and ability to invest. The absence of any one or more of these may suggest that the services of an external provider are appropriate.
If the relationship decision involves a channel partner such as a supplier or customer, the focus is not so much on whether or not to have a relationship but on what type of relationship will work best. In either case, the question as to what type of relationship is most appropriate is one that is very important to answer.
Answer to Question 2
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