A Catalog Merchant Wants to Build a New Distribution Center

question 149

Multiple Choice

A catalog merchant wants to build a new distribution center that will improve inventory management, storage of products, shipping, and returns. The company develops a close relationship with UPS, its main supplier of shipping services. UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS. This arrangement reduces shipping costs and improves service to the catalog merchant's customers. This situation is an example of:

• A) Information sharing.
• B) Negotiated contract buying.
• C) Legal bonds.
• D) Competition.
• E) Relationship-specific adaptations.

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