Logistics Collaborations. Introduction. Collaborations

1245 WordsFeb 17, 20175 Pages
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…show more content…
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
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