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Maintaining a productive relationship in the supply chain

from By Ken Ackerman

Two of the dirtiest words in supply chain management are commoditization and disintermediation. In fact, they really refer to the same thing — the ability of the buyer of logistics services to destroy the vendor's effort to create a unique value proposition. In wholesale distribution, disintermediation is the buyer's tactic of cutting out the middleman and buying directly from the manufacturer. The same challenge exists for logistics service providers and their customers. When the buyer considers such services to be a commodity, the decision will be based solely on price. more

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