Designing and Managing the Supply Chain,WHUT,2017Lecture 10(Chapter8)StrategicAlliancesandVMl王长琼
Lecture 10 (Chapter 8) Strategic Alliances and VMI 王长琼 1 Designing and Managing the Supply Chain, WHUT, 2017
8.1 IntroductionIncreasingcomplexityinbusinessenvironments*ResourcesarebecomingincreasinglyscarceManyfunctions need to be outsourcedFirms need to ensure thatfunctionsareperformedbytheotherfirmsS
8.1 Introduction Increasing complexity in business environments Resources are becoming increasingly scarce 2 Many functions need to be outsourced Firms need to ensure that functions are performed by the other firms
FourBasicWaystoEnsureLogisticsfunctionareCompletedInternalactivities* Activitiesthatare core strengths maybethe best waytoperform the activity*Acquisitions，收购* Gives the acquiring firm full control over the way the particularbusiness function is performed* Can be difficult and expensive. (Culture conflict/Competitors)*Arm's-lengthtransactions，常规交易* Most business transactions are of this type* Short-term arrangement that fulfills a particular business needbutdoesn'tleadtolong-term strategic advantagesStrategicalliances*Multifaceted,goal-oriented,long-term partnerships* Risksare pooled and rewardsareshared.* Typicallylead to long-term strategic benefitsforpartners.3
Four Basic Ways to Ensure Logistics function are Completed Internal activities Activities that are core strengths may be the best way to perform the activity. Acquisitions ,收购 Gives the acquiring firm full control over the way the particular business function is performed Can be difficult and expensive. (Culture conflict/Competitors) Arm’s-length transactions，常规交易 Most business transactions are of this type. Short-term arrangement that fulfills a particular business need but doesn’t lead to long-term strategic advantages. Strategic alliances Multifaceted, goal-oriented, long-term partnerships Risks are pooled and rewards are shared. Typically lead to long-term strategic benefits for partners. 3
Three Types of Strategic AlliancesThird Party Logistics (3PL);Retailer-SupplierPartnerships(RSP）(VMI)* Distributor Integration (Dl)
Three Types of Strategic Alliances Third Party Logistics (3PL)， Retailer–Supplier Partnerships (RSP) （VMI） Distributor Integration (DI) 4
8.3 Third Party Logistics (3PL)* Use of 3PL providers to take over acompany's logistics functions* Almost a $85billion industry by 2004* 8% of all logistics costs attributed to 3PL
8.3 Third Party Logistics (3PL) Use of 3PL providers to take over a company’s logistics functions Almost a $85billion industry by 2004 8% of all logistics costs attributed to 3PL 5