33:799:301 Lecture 4: 0002-IntrotoSupplyChain-2017-02-02
7 Feb 2017
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Document Summary
Strategic alliance in sourcing - an agreement between a buyer and a supplier to pursue some agreed upon objectives, while remaining independent organizations. Companies agree to share information and resources to achieve a mutual benefit. Preferred suppliers are potentially ideal candidates for a strategic alliance. Potential to increase revenue and profits for both parties. Potential to create a competitive advantage or block a competitor for gaining marketing share. Mitigate risks and ensure a continuity of supply. Position the partners for future strategic opportunities. Strategic alliance development - an extension of supplier development which refers to increasing a key or strategic supplier"s capabilities. Results in better market penetration access to new technologies and knowledge, and higher return on investment. Eventually extends to a firm"s second-tier suppliers as the firm"s key suppliers begin to form their own alliances. Distributive negotiations - refers to a process that leads to self-interested, one-sided outcome.
