Answer to Question 1
The first is what may be termed vertical relationships, which refers to the traditional linkages between firms in the supply chain such as retailers, distributors, manufacturers, and parts and materials suppliers. These firms relate to one another in the ways that buyers and sellers do in all industries, and significant attention is directed toward making sure these relationships help to achieve individual firm and supply chain objectives.
The second type of logistics relationship is horizontal in nature and includes those business agreements between firms that have parallel or cooperating positions in the logistics process. To be precise, a horizontal relationship may be thought of as a service agreement between two or more provider firms based on trust, cooperation, shared risk and investments, and following mutually agreeable goals. Each firm is expected to contribute to the specific logistics services in which it specializes, and each exercises control of those tasks while striving to integrate its services with those of the other logistics providers.
Answer to Question 2
True
