{"id":444,"date":"2016-07-13T12:59:43","date_gmt":"2016-07-13T17:59:43","guid":{"rendered":"http:\/\/blogs.uww.edu\/prasad\/?page_id=444"},"modified":"2016-07-13T12:59:43","modified_gmt":"2016-07-13T17:59:43","slug":"the-strategic-benefits-of-logistic-alliances","status":"publish","type":"page","link":"https:\/\/blogs.uww.edu\/prasad\/teaching\/independent-study\/the-strategic-benefits-of-logistic-alliances\/","title":{"rendered":"The Strategic benefits of logistic alliances"},"content":{"rendered":"

Donald J Bowersox<\/p>\n

Harvard Business Review<\/h2>\n

July-August 1990, p. 36-45<\/p>\n

 <\/p>\n

1)\u00a0\u00a0\u00a0\u00a0\u00a0 Logistics Alliances<\/p>\n

    \n
  1. a) Goals<\/li>\n
  2. i) Opportunities to improve quality of customer service<\/li>\n
  3. ii) Cooperation replaces adversarial stance separating buyers and sellers<\/li>\n
  4. b) Types<\/li>\n
  5. i) Alliances between a logistics services provider and a producer of goods<\/li>\n<\/ol>\n

    (1)\u00a0\u00a0 Jointly developed system<\/p>\n

    (2)\u00a0\u00a0 Emphasis on improved speed<\/p>\n

      \n
    1. ii) Alliances between two service providers<\/li>\n<\/ol>\n

      iii)\u00a0\u00a0\u00a0\u00a0 Alliances between two product marketers<\/p>\n

        \n
      1. c) Level of involvement<\/li>\n
      2. i) Routine services<\/li>\n
      3. ii) Some additional activities<\/li>\n<\/ol>\n

        (1)\u00a0\u00a0 Contains les risk<\/p>\n

        (2)\u00a0\u00a0 Partners share cost savings<\/p>\n

        iii)\u00a0\u00a0\u00a0\u00a0 Complete responsibility for logistics requirements<\/p>\n

        (1)\u00a0\u00a0 Service provider assumes more risk<\/p>\n

        (2)\u00a0\u00a0 Includes rewards<\/p>\n

        (3)\u00a0\u00a0 Risk may include capital investment<\/p>\n

        2)\u00a0\u00a0\u00a0\u00a0\u00a0 Forces of impetus<\/p>\n

          \n
        1. a) Political\/legal terrain<\/li>\n
        2. i) Deregulation of transport<\/li>\n
        3. ii) Deregulation of communications<\/li>\n<\/ol>\n

          iii)\u00a0\u00a0\u00a0\u00a0 Relaxed anti-trust enforcement<\/p>\n

            \n
          1. b) Explosion of IT<\/li>\n
          2. i) Computerization more accessible\/inexpensive<\/li>\n
          3. ii) Information holds alliances together<\/li>\n
          4. c) Emphasis on leaner organizations<\/li>\n
          5. i) Trend to hire external specialists\/ consultants rather than complete activities in-house<\/li>\n
          6. d) Escalating competitive forces<\/li>\n
          7. i) Low cost emphasis<\/li>\n<\/ol>\n

            3)\u00a0\u00a0\u00a0\u00a0\u00a0 Strategic Vision<\/p>\n

              \n
            1. a) Willingness to offer value-added services<\/li>\n
            2. i) Serving the customer better<\/li>\n
            3. ii) Strive to maintain customer loyalty through continuous improvement<\/li>\n
            4. b) Benefits of alliances<\/li>\n
            5. i) Specialization realizes economies of scale<\/li>\n
            6. ii) Spread of risk<\/li>\n
            7. c) What they must contribute<\/li>\n
            8. i) Economic \/ managerial strength<\/li>\n
            9. ii) Appropriate IT and information sharing capabilities<\/li>\n<\/ol>\n

              iii)\u00a0\u00a0\u00a0\u00a0 Ability to operate on two levels<\/p>\n

              (1)\u00a0\u00a0 Performing specified role in specialist operating domain<\/p>\n

              (2)\u00a0\u00a0 Able to mesh the tasks and work together<\/p>\n

              (a)\u00a0\u00a0\u00a0 Understand each others value systems<\/p>\n

              (b)\u00a0\u00a0 Grasp entire distribution system<\/p>\n

                \n
              1. iv) Willingness to cooperate<\/li>\n<\/ol>\n

                (1)\u00a0\u00a0 Establish ground rules<\/p>\n

                (2)\u00a0\u00a0 Willingness to change and evolve relationship<\/p>\n

                (3)\u00a0\u00a0 Provision for exit<\/p>\n

                  \n
                1. d) Why Alliances fail<\/li>\n
                2. i) Failure to develop rules and provisions at entry<\/li>\n
                3. ii) Clashes of culture and style<\/li>\n<\/ol>\n

                  iii)\u00a0\u00a0\u00a0\u00a0 Failure to develop trust at onset<\/p>\n

                    \n
                  1. iv) Uneven commitment<\/li>\n<\/ol>\n

                    4)\u00a0\u00a0\u00a0\u00a0\u00a0 Conclusion<\/p>\n

                      \n
                    1. a) Alliances are making industry more competitive and more efficient<\/li>\n
                    2. b) Main rationale is increased competitive advantage<\/li>\n<\/ol>\n

                       <\/p>\n

                      Key points:
                      \n-Partners should view arrangement as part of a strategic plan<\/p>\n

                      -Partners should seek arrangements that spread risk and achieve scale economies<\/p>\n

                      -Benefits are gained through long-term relationships where parties are interdependent<\/p>\n

                      -Building trust and setting goals, roles and rules at onset is essential to build a long-term relationship<\/p>\n

                       <\/p>\n

                       <\/p>\n

                       <\/p>\n

                       <\/p>\n

                       <\/p>\n","protected":false},"excerpt":{"rendered":"

                      Donald J Bowersox Harvard Business Review July-August 1990, p. 36-45   1)\u00a0\u00a0\u00a0\u00a0\u00a0 Logistics Alliances a) Goals i) Opportunities to improve quality of customer service ii) Cooperation replaces adversarial stance separating buyers and sellers b) Types i) Alliances between a logistics services provider and a producer of goods (1)\u00a0\u00a0 Jointly developed system (2)\u00a0\u00a0 Emphasis on improved […]<\/p>\n","protected":false},"author":3916,"featured_media":0,"parent":118,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-444","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/users\/3916"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/comments?post=444"}],"version-history":[{"count":1,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/444\/revisions"}],"predecessor-version":[{"id":445,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/444\/revisions\/445"}],"up":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/118"}],"wp:attachment":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/media?parent=444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}