INSTITUTE –University School of

Business
DEPARTMENT -Management
M.B.A
Logistics & Supply Chain Management 23BAT-623

Lecture – Supply Chain Strategy for Strategic

Alliances
UNIT-3: Supply
DISCOVER . LEARN . EMPOWER
Chain Strategy

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 Supply Chain Strategy for Strategic Alliance

Course Objective Course Outcome

CO Title Level CO Title Level
Number Number
CO1 At the completion of this course, the Understand CO1 Design competition strategies, Understand
student should be able to including costing, pricing, product
understand the concepts related to differentiation, and market
SCM. . environment according to the
natures of products and the
CO2 Students will be able to design and Apply structures of the markets.
study performance of supply
networks and processes in different CO2 Understand the links between Apply
business contexts production costs and the economic
models of supply.
2

CO3 To understand the global supply CO3 Understand how different degrees of Analyze
Analyze
chains & risks thereof competition in a market affect
pricing and output
Strategic Alliances in SCM

Source : Shutterstock 3
Strategic
Alliances
in
SCM
 Strategic Alliance in SCM

Strategic Alliances are partnerships in which two or

more companies work together to achieve objectives
that are mutually beneficial.

Companies may share resources, information,

capabilities and risks to achieve this.
 Strategic Alliance in SCM

According to Producer's eSource, a common reason

for entering into a strategic alliance is to obtain the
advantage of another company's innovations without
having to invest in new research and development.

While companies have used acquisition to accomplish

some of these goals in the past, forming a strategic
alliance is more cost-effective.
 Why Strategic Alliance is Required

 Complexity in business environments increasing

 Resources required to manage are becoming increasingly

scarce

 Many functions need to be outsourced

 Firms need to ensure that functions are performed by the

other firms
 When to go for Strategic Alliance

 Adding value to products

 Improving market access

 Strengthening operations

 Adding technological strength

 Enhancing strategic growth

 Enhancing organizational skills

 Building financial strength

 The downside of Strategic Alliance

 Core competencies should not be compromised

 Competitive advantages should not be compromised

 Three Types of Strategic Alliances

 Third Party Logistics (3PL)

 Retailer–Supplier Partnerships (RSP)

 Distributor Integration (DI)

 Third Party Logistics (3 PL)

Third-party logistics (abbreviated as 3PL, or TPL) in logistics and

supply chain management is an organization's use of third-party

businesses to outsource elements of its distribution, warehousing, and

fulfillment services.
Third Party Logistics (3 PL)

Source: Titan Worldwide

 Retailer Supplier Relationship
Cooperative relationship between suppliers and retailers to use
one another’s knowledge

Suppliers have better knowledge of lead times and production

capacities

Retailers have better knowledge of demands

Retailer Supplier Relationship
 Distributor Integration

The aim of distributor integration is to treat distributors like

partners.

This interprets to mean appreciating the value of

the distributors and their relationship with the end users, and
providing them with the necessary support to be successful.
Distributor Integration

Source: enchange.com
 Resources

1. Essentials of Supply Chain Management (Essentials

Series) Paperback – Import, 12 August 2011 by Michael
H. Hugo

2. Principles and Practice of Supply Chain

Management Hardcover – Import, 3 June 2019
By Judy Dickens

3. Supply chain design and management: Strategic and

tactical perspectives by Manish Govil and Jean-Marie
Proth
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 Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Business GD Forum Attendance Scaled

Test Quiz Marks

Max. Marks 10 10 6 4 4 4 2 40

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Homework

• Why strategic alliance is important in Supply Chain Management?

• How 3PL strategy help to make Lean Supply Chain?

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THANK YOU

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