Implementing Relationships
The key to a successful implementation is choosing a partner wisely. The partners should have compatible cultures, a common strategic vision, and supportive operating philosophies. It is not necessary that organization cultures be identical. Rather, the strategic intentions and philosophies must be compatible to ensure that core competencies and strengths are complementary.
For example, manufacturers initiated alliances with service suppliers in part to achieve improved warehousing operations, transportation reliability, or increased consolidation programs that support their particular strategic competitive advantage in the marketplace. Although the service suppliers are leaders, manufacturers may have a more sophisticated conceptualization and operationalization of quality, performance measurement standards, and expertise. The attraction between the partners is based, to a considerable degree, on the service suppliers’ ability and willingness to provide creative, innovative operational and information-based solutions to the manufacturer’s problems and on the service suppliers’ desire to internalize the quality and performance measurement expertise that are the hallmark of the manufacturer. In this sense, the alliance partners’ operating philosophies support and complement each other, in particular by enhancing their common strategic vision of improving system wide logistics processes.
The alliances should start on a small scale to foster easily achievable successes or early wins. It is important that such early wins be acknowledged to motivate key contacts and build confidence concerning alliance performance. For example, in the manufacturer/material supplier alliances, starting small meant that investments were not initially made in information technology. Manual communication systems were sufficient and provided the opportunity for key contacts. A critical issue is to implement the alliance in its simplest form and then fine-tune the arrangement with technological sophistication when improvements will add substantial value.
Maintaining Relationships
Long-term continuity is dependent on three key activities: (1) mutual strategic and operational goals, (2) two-way performance measurements, and (3) formal and in formal feedback mechanisms.
Strategic and operational goals must be mutually determined when the alliance is implemented. It is perhaps less well understood that these goals must be tracked, reviewed, and updated frequently to gain improvements over the long term. For example, if a manufacturer develops a new product, a mutual goal must be set with customers concerning that product’s position, especially its market launch. This goal must include consideration of the merchandiser’s critical role in new product introduction and acceptance.
Implementing Relationships The key to a successful implementation is choosing a partner wisely. The partners should have compatible cultures, a common strategic vision, and supportive operating philosophies. It is not necessary that organization cultures be identical. Rather, the strategic intentions and philosophies must be compatible to ensure that core competencies and strengths are complementary.For example, manufacturers initiated alliances with service suppliers in part to achieve improved warehousing operations, transportation reliability, or increased consolidation programs that support their particular strategic competitive advantage in the marketplace. Although the service suppliers are leaders, manufacturers may have a more sophisticated conceptualization and operationalization of quality, performance measurement standards, and expertise. The attraction between the partners is based, to a considerable degree, on the service suppliers’ ability and willingness to provide creative, innovative operational and information-based solutions to the manufacturer’s problems and on the service suppliers’ desire to internalize the quality and performance measurement expertise that are the hallmark of the manufacturer. In this sense, the alliance partners’ operating philosophies support and complement each other, in particular by enhancing their common strategic vision of improving system wide logistics processes.The alliances should start on a small scale to foster easily achievable successes or early wins. It is important that such early wins be acknowledged to motivate key contacts and build confidence concerning alliance performance. For example, in the manufacturer/material supplier alliances, starting small meant that investments were not initially made in information technology. Manual communication systems were sufficient and provided the opportunity for key contacts. A critical issue is to implement the alliance in its simplest form and then fine-tune the arrangement with technological sophistication when improvements will add substantial value.Maintaining RelationshipsLong-term continuity is dependent on three key activities: (1) mutual strategic and operational goals, (2) two-way performance measurements, and (3) formal and in formal feedback mechanisms. Strategic and operational goals must be mutually determined when the alliance is implemented. It is perhaps less well understood that these goals must be tracked, reviewed, and updated frequently to gain improvements over the long term. For example, if a manufacturer develops a new product, a mutual goal must be set with customers concerning that product’s position, especially its market launch. This goal must include consideration of the merchandiser’s critical role in new product introduction and acceptance.
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