Facilitating institutions may best be described as specialists that:

Question

Quizplus · Accepted Answer

Facilitating institutions assist in performing marketing functions for supply chain members without taking title to the product. Examples include advertising agencies and transportation companies. They help in reducing transaction costs and coordinating the flow of goods and information. Choice B is incorrect because creating new markets is not the primary role of facilitating institutions. Choice C is incorrect because supply chain leaders are typically manufacturers, wholesalers, or retailers. Choice D is incorrect because facilitating institutions do not perform functions that supply chain members cannot legally perform. Choice E is incorrect because conflict can still arise in the supply chain despite the presence of facilitating institutions.

Facilitating Institutions May Best Be Described as Specialists That