Flexibility in the supply chain : inter-firm relationship competences and their impact on cost performance

Supply chain participants such as trucking firms are faced with ever escalating pressures to excel in their operations as they compete in world class supply chains. With the growing complexities and changing business environments prevalent today, these trucking firms are also compelled to adopt strategies of agility, especially in the areas of flexibility and speed. This requirement is often challenging given that many of these firms engage in arms’ length relationships. One strategic approach is engaging in various inter-firm relationships. This study investigated the relationship between the combination of resources through sharing with supply chain partners for flexibility on cost effectiveness. The results depict that developing competences in sharing resources, assets and information lead to flexibility in the trucking industry. Similarly, these capabilities were also found to impact on cost effectiveness both organisation-wide as well as throughout the supply chain.