Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2025 – Your All-in-One Resource to Complete Exam Success!

Question: 1 / 605

What type of relationship is formed during external integration in supply chain management?

Hierarchical relationships within the company

Collaborative relationships with outside partners

The identification of collaborative relationships with outside partners during external integration in supply chain management highlights the critical focus on partnership and teamwork that transcends organizational boundaries. External integration is designed to enhance the flow of information, resources, and decision-making capabilities beyond a single company's walls.

In this context, the establishment of collaborative relationships allows companies to synchronize their operations with suppliers, logistical service providers, and even customers. This collaboration leads to improved efficiencies, better responsiveness to market changes, and ultimately, greater competitiveness. By working closely with external partners, companies can share insights, align objectives, and innovate collectively, which is essential for achieving strategic supply chain goals.

The other types of relationships mentioned do not fit the context of external integration. Hierarchical relationships within the company are typically internal and do not involve external parties. Independent relationships with competitors focus on maintaining distance rather than collaboration. Transactional relationships with consumers usually emphasize single interactions rather than ongoing partnerships that are characteristic of external integration. Thus, the choice of collaborative relationships accurately reflects the essence of strategic alliances and partnerships that underpin the philosophy of external integration in supply chain management.

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Independent relationships with competitors

Transactional relationships with consumers

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