A catalog merchant wants to build a new distribution center that will improve inventory management, storage of products, shipping, and returns. The company develops a close relationship with UPS, its main supplier of shipping services. UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS. This arrangement reduces shipping costs and improves service to the catalog merchant's customers. This situation is an example of:

Question

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The development of a close relationship and coordination between the catalog merchant and UPS, resulting in a distribution center design that improves inventory management, storage, shipping, and returns, is an example of relationship-specific adaptations. These adaptations are specific to the relationship between the two companies and result in improvements in efficiency and cost savings.

A Catalog Merchant Wants to Build a New Distribution Center