Logistics Collaborations
Introduction
Collaborations allow for businesses to focus on what they specialize in, while eliminating excess work outside of the core function of their operation. Within the readings of Diagnosing Greatness, Pisano & Verganti dispute, “the collaborative approach chosen must be right for the organization and its business circumstances” (Poirier, 2008, p. 99). The focus on a collaboration benefiting its business circumstances, in addition to yielding benefits, while allowing for a competitive market place are key. Despite the need for competition in a successful marketplace, collaborations yield unprecedented benefits to business & consumers.
Literary Review As Diagnosing Greatness teaches, collaborations are
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A collaboration of this scale allows for the brand to share logistics of this machinery between the brands, while still allowing for competition in sales of its distinctive vehicles.
Results
Dating back to 2013, the two automotive manufactures began discussing ideas of collaborating on an automatic transmission (Rosevear, 2016). The two brands began the collaboration in 2016 (Rosevear, 2016) on this project, as it would save millions over the combined sales between the two companies, rather than front the cost of developing individual parts. Most automotive brands source this part from a German company ZF Friedrichshafen (Rosevear, 2016), to save cost on producing a complex piece of mechanics for their automobiles. The logistics required to manufacture as well as supply this complex part of an automobile pose a massive cost in the industry. Furthermore, automobiles manufactured at multiple locations across the globe share this similar part, manufacturing it separately at each location poses many additional unwanted supply chain processes. By consolidating transmission production between Ford and General Motors, the logistics operation significantly downsizes for the two brands.
Discussion
Two long standing rival companies understood the benefits of collaboration. As Intrieri discusses in an article on The Effective use of
Corporations nowadays partner with each other because separately those firms have internals needs they cannot fulfill by themselves (Mohr & Sengupta, 2002). When businesses join in cohesive collaboration, each party begins to absorb each other’s knowledge and skills internally to acquire strengthen in marketplace (Mohr & Sengupta, 2002). All in all, inter-firm learning brings success in business partnerships if organizations select a project that offer innovative benefits that peak each partner’s interests, selecting a partner which suits the company’s style of the business, and managing joint projects which lead to developing a competence in working with others (Dickson, Coles, & Lawton Smith, 1997).
Moving toward establishing win-win relationships in the context of strategic alliances, organizations are looking at total cost as a criterion, thus allowing win-win relationship building to lower total costs. Most public and private sector organizations are expected to use integrative (win-win) versus distributive (win-lose) negotiations, as they move away from adversarial and toward collaborative relationships with suppliers.
* Un-established environment where the two companies could remain apart, but at the same time work together.
Part A: Describe how you would design a new logistics network consisting of only a single warehouse.
This communication process had a rocky start. Built originally on a time-expense model, partnerships between divisions were strained due to conflicts over time and resource allocations. The company ultimately placed the head of P&C as the new leader of IS. This helped create a user orientation within IS and established good relationships with other divisions.
(1) Synergy creation: The businesses of both companies are famous and highly complementary to each other.
Mike Sadle is the owner of Mike’s Wrecker Service in Huntsville, Alabama. Mike has been providing tow services in the Huntsville and the surrounding areas for the past 20 plus years. During that span, Mike has experienced firsthand the growth and evolution of the towing industry. The purpose of this project was to help Mike identify an area in his business where a significant contribution could be made to increase the overall success of the company. The goal was to present Mike’s Wrecker Service with a telematics solution that will not only bring added value to the company but also provide a significant competitive advantage.
Why is partnering described as the highest-quality selling relationship? Why has the building of partnerships become more important today?
The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and
Partnering is the first step in a sequential process that fosters collaborative teamwork. Teams not only work well together, but they encourage individual growth and achievement. Define the goals of the partnership clearly at the outset, set and fill the agreed upon roles, and adhere to group norms, mission, and vision. Employees will commit to growth and achievement, especially when they see initial success.
• It takes time and effort to build the right relationship and partnering with another business can be challenging. Problems are likely to arise if:
Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.
Partners: Together we create mutual, enduring value and cultivate a captivating network of clients and suppliers.
Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support. 'Logistics ' is the management of the flow of resources, not only goods, between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization. But when decisions need to be made, there is always a trade off between these targets.
There are many challenges being faced by the logistics industry today as the companies strive for sustainability. This is because the providers of logistics services have, over a period of several years, found them being integrated into the production processes of their customers, while at the same time, governments and businesses have continued to carefully weigh the issue of logistics in their investment and business decisions. Some of the previous trends and the forces of the operations of logistics that drive the transformation of a Freight forwarding company will be examined. It will focus on theories, conceptual models and frameworks that explain logistic operations. The gaps in the logistics operations and the dangers of not addressing