A hospital supply company invests in training for a team of sales associates to learn the details of each hospital chain's operations.In return,the hospital chain invests in a computer system that supports supply ordering.The supply company and the hospital chain are working to ensure the success of their long-term relationship by
A) reducing the risk of losing proprietary technology.
B) making a credible commitment.
C) encouraging competitive bidding.
D) facilitating vertical integration.
E) using parallel sourcing.

Question

Quizplus · Accepted Answer

By investing in training and a computer system, both the hospital supply company and the hospital chain are making a credible commitment to each other. This helps to ensure that the relationship will last long-term and both parties will benefit from the partnership.

A Hospital Supply Company Invests in Training for a Team