Outsourcing the Supply Chain: Defining the Optimal Relationship between Customer and Vendor




Platz, Leah Ann

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With the supply chain model and global procurement becoming increasingly popular due to the global demands of today’s economy, companies are committing themselves to multiple business-to-business relationships. Establishing the new relationship between the customer company and vendor company within the supply chain is a complex process that is contract intensive in nature. The purpose of this research is to identify the key elements of the contracts between customer and vendor companies, translate these findings into a theoretical model of the ideal contract between customer and vendor companies, and to identify the nature and implications of problems that arise from insufficiently addressing any of the key elements within these contracts. Responses from interviewees reinforced the theoretical model and also showed a connection between the outsourcing contract itself and the bullwhip effect. Finally, this research shows that the strength of the outsourcing contract and strength of the bullwhip effect are interrelated.



contracting out, vendors, purchasers


Platz, L. A. (2006). Outsourcing the supply chain: Defining the optimal relationship between customer and vendor (Unpublished thesis). Texas State University-San Marcos, San Marcos, Texas.


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