Lateral coordination in a logistics outsourcing relationship

This paper studies the coordination of activities between two different organizations. The object of analysis is a logistics outsourcing relationship and its inter-organizational coordination requirements. The possibilities of using different forms of lateral coordination mechanisms - informal coordination, formal inter-organizational teams, and integrating roles - are discussed. The main conclusion is that developing of lateral organizational capability through practicing the presented lateral coordination mechanisms, and actively promoting it to customers, can become a potential source of competitive advantage for logistics service providers. (C) 2002 Elsevier Science B.V. All rights reserved.