Supply Chain Relationships: Making the Transition to Closer Integration

The development of closer relationships in supply chains is investigated from a change management perspective. Based on theory and previous research, five critical elements of the interaction process between parties in the supply chain are identified. Specifically, these elements relate to the interface between organisation-internal processes and the inter-company relationship transformation. A case study focusing on the relationship transformation process of a retailer and 40 of its suppliers is used to explore these elements empirically. Drawing upon the insights gained, a framework is developed encompassing the most important areas for advancing the state-of-practice and for guiding further research.