Discussion: strategic alliance among supply chain partners

Discussion Student: Professor: Course title: Date: Discussion Evaluate the need for a strategic alliance among supply chain partners. Provide an example from the text and/or your professional experience of a successful strategic alliance. Provide a benefit of this partnership and how a project manager can use this strategy in a project involving purchasing and supply management. Benton (2010) states that Supply Chain Partnership, also known as strategic alliance is a relationship formed between two independent parties in supply channels in order to attain specific benefits and objectives. There is a need for strategic alliance among supply chain partners because it is a win-win for both the supplier and the buyer who share their goals and inherent risks by planning and controlling jointly, and this coordination provides for improved service and decreased uncertainly. By involving efforts of the two partners in coordinating functional activities, partnerships go beyond special influence transactions. An example is in the automotive industry whereby the suppliers provide the necessary raw materials and equipment for the automobile company, which enjoys economies of scale in ordering and production. The benefit of this partnership is that it results in cost savings, whereby buyers gain from reduction in transaction costs due to economies of scale, quality discounts, decreased switching efforts and administrative costs. A project manager can use this strategy in a project involving purchasing and supply management, by ordering for large quantities and enjoy economies of scale, which can also be in production and transaction. There is also the benefit of time management and the project manager can apply this strategy to facilitate faster product development and improved cycle time (Michael & Benton, 20...