15

Alliances and Outsourcing

“Partnering is the quickest, most effective way to re-engineer a business

 

—Curtis E. Sahakian”

INTRODUCTION

Today, business organizations across the world are struggling for the competitiveness not only for growth but also for survival. The factors responsible for this are liberalized economies of the countries across the world, globalization of the businesses and recessionary trends in the markets. Moreover, the customer has become more demanding and looks for value-added services from prospective suppliers, as he wants value for the money he is spending. In such a situation, business organizations across the world have started reviewing their business processes and they realized that cost cutting and differentiation in value delivery process are solutions to the current problem. This can be done through outsourcing the non-core operations to experts in the field and concentrating on core business areas. The expert can do the job both cost-effectively and efficiently. Hence, the accepted trend observed in the industry is ‘hollowing’ of the corporations, that is, outsourcing non-core functional areas of the management and gaining operating efficiencies and effectiveness by engaging the services of the experts in that particular field.

Outsourcing brings about the responsiveness in supply chain operations as there is real-time information sharing amongst supply chain partners and customers. However, there are many other issues in supply chain collaboration with vendors and these are:

• As the decision-making centres in the downstream are more, decision-making is not uniform. Secondly, due to time lag in information progression in upstream from the market, there is lot of distortion in information. This is known as ‘bullwhip effect’, which results either in excess inventory or stock outs.
• If the demand information is not correct and reliable, the decision-makers in supply chain make their own guessing. In this situation, the product is manufactured in excess and the firm has no option but to resort to push strategy.
• In the absence of information sharing, demand forecasts and orders are often distorted.

The supply chain collaboration that can prove fruitful should be focused on information sharing. This requires coordinating vast amount of structured data using enterprise systems such as ERP, MRP, APS, SCM, EDI and many others.

STRATEGIC ALLIANCE

Supply chain management is involved in planning and management of procurement, manufacturing and distribution activities. IT coordinates and collaborates with channel partners. These are suppliers, intermediaries and third-party service providers.

There are a number of strategic alliances amongst the above mentioned players. A strategic alliance is a formal relationship formed between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent.

Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is cooperation or collaboration which aims for a synergy, where each partner hopes that the benefits from the alliance will be greater than those from individual efforts.

The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.

There are four types of strategic alliance in supply chain, which are as follows:

• Third-party logistics—3PL: It is the use of an outside company to perform all or part of the firm's material management and product distribution functions.
• Fourth-party logistics—4PL: It refers to the evolution in logistics from suppliers focused on warehousing and transportation (third-party logistics providers) to suppliers offering a more integrated solution. Amongst other services, fourth-party logistics providers include supply chain management and solutions, change management capabilities, and value-added services in their offering. The evolution of outsourcing can be seen in Figure 15.1.

   

  

   

  Figure 15.1 Evolution of Logistics

   

• Retailer-supplier partnerships: It is the formation of strategic alliances between the retailers and their suppliers.
• Distributor integration: This appreciates the value of the distributors and their relationship with the end users and provides them with the necessary support to be successful.

Strategic alliances often bring partners the following benefits:

• Access to partner's distribution channels and markets
• Access to partner's technology and intellectual property
• Access to partner's capital
• Access to partners markets and their customers
• Increased brand awareness through partners channels
• Speed to market due to joint efforts
• Reduced R&D costs and risks
• Rapid scale achievement, critical mass and momentum
• Access to management skills

Just-in-time inventory purchasing and supplying alliance between Wal-Mart and P&G has continued to prove successful over the years. Home Depot and Dell Computers have also built powerful alliances with their suppliers for cost saving through just-in-time inventory in similar applications. Below are some supply chain improvement areas available to firms through strategic alliance relationships:

• Management of supply channel conflict
• On-time product delivery
• Prompt response to complaints
• Greater quality and delivery consistency in inventory
• Improved handling of customer complaints
• Improved supply chain productivity
• Prompt response to quote requests and price problems
• Confidentiality of shared business strategy

THIRD-PARTY LOGISTICS

There are four categories of 3PL providers:

• Standard 3PL provider: This is the most basic form of a 3PL provider. They perform activities such as pick and pack, warehousing, and distribution—the most basic functions of logistics.
• Service developer: This type of 3PL provider will offer their customers advanced value-added services such as tracking and tracing, cross-docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of scale and scope will enable this type of 3PL provider to perform these types of tasks.
• The customer adapter: This type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company's logistics activities. The 3PL provider improves the logistics dramatically, but do not develop a new service. The customer base for the 3PL provider is typically quite small.
• The customer developer: This is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL provider integrates itself with the customer and takes over their entire logistics function. These providers will have few customers, but will perform extensive and detailed tasks for them.

The trend of using strategic partnership in integrated logistics became the accepted practice in the industry. These firms are external to the company and provide one or more aspects of its entire logistics service product portfolio. These services can be provided on stand-alone or integrated basis. The stand-alone operators are called ‘Wholesalers’ who extend only one type of service in which they have expertise. These services may be: warehousing, transportation, inventory management, packaging, etc. However, the one who provides entire logistics services and offers logistics solutions to the customer problems is called as an ‘integrator’. The preferred trend in the industry is an integrated logistics solution provider to solve logistics problems from one source.

The growth of 3PL was witnessed in the 1990s when corporations around the world started concentrating on the entire supply chain and realized that logistics is a key to success in supply chain. They understood that the most important strategic utilization of logistics is improvement in customer service followed by gaining market share and reduction in cost. The most important reason for the rapid acceptance of 3PLs is due to the quick gains by the users of the 3PL services. As per the survey conducted by 3PL firms in the United States, during 1996 and 1998 the early users of 3PL firms reported the following benefits:

• Logistics cost reduced by 7.8 per cent
• Logistics assets fell by 21.6 per cent
• Order cycle time reduced from 6.3 to 3.5 days

Initially, corporation were outsourcing only warehousing and transportation to 3PL firms, but as the confidence level started going up and benefits started accruing, they were invited to provide services in the areas of traffic management, multimodal transportation services, freight consolidation, cross-docking, freight auditing and payment collections, etc. More and more companies have started using 3PL services as a source of strategic advantage with a view to achieve broader business objectives than cost saving and cycle time reduction. Some of the broader objectives, the corporations had in mind for going in for 3PL services are:

• Reduction in risk and liability
• Value-added services to customer
• Source of process improvement
• Wider market coverage

As this service industry is in the maturity stage in the developed countries, there is stiff competition in this sector and consequently they are offering customized services in the niche markets. They are providing value-added services such as consignment tracking, real-time data access and analysis, cross-docking, assembly, etc.

FOURTH-PARTY LOGISTICS

The next significant evolution in supply chain management after third-party logistics (3PL) is fourth-party logistics (4PL). Fourth-party logistics enables firms to respond to today's supply chain requirements more effectively. The fourth-party logistics provider is a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver comprehensive supply chain solutions.

The term ‘fourth-party logistics’ was coined and trademarked by Andersen Consulting. These are 3PL firms that have invested in technology, human resources and alliances in order to present a single point of contact for operation of a customer's supply chain. Those leading firms include Menlo Logistics, Ryder System, Federal Express, UPS Logistics, GATX Logistics, Exel and Schneider Logistics.

In essence, the 4PL provider is a supply chain integrator of all 3PL service providers. 4PL service provider coordinates, assembles, aligns and manages the capabilities of 3PL vendors. 4PL is an assetless vendor. 4PL operates on IT platform and deliver a comprehensive supply chain solution using capabilities of 3PL vendors.

Information technology plays a major role in logistics and supply chain management. Today the integration of logistics, which is a complex exercise, is totally dependent on IT support. Third-party logistics suppliers are providing logistics solutions to their clients, based on their domain knowledge they have developed or acquired over the years of experience in the logistics business. However, a new trend has emerged, wherein the IT firms are providing logistics solutions built around domain knowledge provided by 3PL companies. These new breeds of companies are called as Fourth-Party Logistics Service Providers or 4PL firms.

The dividing line between the 3PL and 4PL is very thin. The leading 3PL companies in the United States think that 4PL is a hype created by management and IT consultancy firms to take away the cream from logistics business which has been built by 3PL companies over the years through their efforts. The genesis of 4PL lies in forming a collaborative relationship amongst various logistics service providers based on IT (Information Technology) backbone. Hence, the network arrangement can be termed as 4PL, provided it fulfils the following requirements:

• Covers the entire supply chain of the customer
• Collaboration between two or more logistics service providers on the resources sharing basis to extent logistics solution to a common customer
• Alliances to be led by integrator with an IT-based and not an asset-based service provider
• Flexible arrangement

For example, a 4PL company of a large Indian FMCG manufacturer operating in Indian and overseas markets which needs to integrate its entire logistics operations handled by different 3PL firms in different geographical areas assigned to them, shall design and operate one single central information system instead of the different systems in different areas by different 3PL firms. The 4PL firm fulfils all the different needs of the client from single source instead of getting into multiple 3PL alliances to achieve different objectives.

Unlike traditional methods, which focus on reduction in operational cost and asset transfer, 4PL works in the following four ways:

• Increases revenue
• Reduces cost
• Reduces working capital
• Reduces fixed capital

4PL is the emerging trend and there are very few 4PL firms operating across the world. It is a complex model and offers greater benefit in terms of economies of scale. Recently, Hewlett Packard (HP) has appointed Circle International (CI) as their 4PL partner in Asia Pacific region. CI is operating from their central hub located at Singapore where it buys and stocks the HP's inventory requirements in the region. The network of warehouse hubs spread across the countries in the region takes care of the distribution. The local HP office in the country draws it inventory requirements by buying from CI local hub. HP does not block its funds in inventory. Thus, 4PL provides logistics services by blocking its own money in someone else's products and components. 4PL supply chain solution includes three phases of work:

• Reorganizing: The most critical element in supply chain management is synchronization of supply chain planning and execution activities across all partners. Reorganizing in the areas of consulting skills, business strategy alignment and creatively redesign and integrate the supply chains of the participants.
• Transformation: Transformation efforts focus on specific supply chain function. Transformation covers in the areas of strategic planning, analysis, process redesign, organizational change management, and technology to integrate the client's supply chain activities and processes.
• Execution: It is an execution at the tactical level. An organization can outsource the entire range of its supply chain activities to a 4PL provider for execution.

4PL leverages a full range of service providers (3PLs) with their capabilities. The 4PL acts as a single point of interface with the client organization and provides the management of multiple service providers through a teaming partnership or an alliance.

Revenue growth is driven by enhanced product quality, product availability and improved customer service. With the 4PL focusing on the entire supply chain—not just the efficiency associated with warehousing or lowest-cost transportation—dramatic customer service improvements can be attained.

Operating-cost reductions of up to 15 per cent are driven through operational efficiencies, process enhancements and procurement savings. Savings are achieved through the complete outsourcing of the supply chain function and not just components and economies of scale. Synchronization of supply chain activities by supply chain participants leads to operating-cost reductions and a lower cost of goods sold, due to integration of processes and improved planning and execution of supply chain activities. The working-capital reduction is up to 30 per cent which is done through inventory reductions.

Fixed-capital is reduced with capital asset transfer and enhanced asset utilization. The 4PL's logistics service providers can take ownership of physical assets, thus freeing up client's assets. This allows the client organization to invest in its core competencies.

The key distinction between 4PL and current approaches to supply chain outsourcing is 4PL's unique ability to deliver value to client organizations across the entire supply chain. The 4PL approaches the concept of supply chain integration through four key drivers of shareholder value: increased revenue, operating cost reduction, working capital reduction, and fixed capital reduction. Traditional approaches have tended to focus only on operating cost reduction and asset transfer.

Revenue growth is driven by product availability and improved customer service. With the 4PL focusing on the entire supply chain—not just the efficiency associated with warehousing or lowest-cost transportation—dramatic customer service improvements can be attained.

RETAILER-SUPPLIER PARTNERSHIP

It's the formation of strategic alliances between the retailers and their suppliers.

Quick Response Strategy

Here suppliers receive point of sale (POS) data from the retailers and use this information to synchronize their production and inventory activities with actual sales at the retailer. In the strategy, the retailer still prepares individual orders, but the POS data are used by the supplier to improve forecasting and scheduling and to reduce local time. In this strategy, the retailer has complete control over its inventory, but helps suppliers improve operations by providing POS data. Additionally, this type of partnership could be preferred if financial and personnel resources to develop a more integrated relationship are not available.

Continuous Replenishment Strategy

Here the vendors receive POS data and use these data to prepare shipments at previous agreed-upon intervals to maintain specific levels of inventory. In an advanced form of continuous replenishment, suppliers may gradually decrease inventory levels at the retail store or distribution centre as long as the service levels are met. Thus, in a structured way inventory levels are continuously improved. This type of partnership is a system between quick response and VMI, because suppliers and buyers together agree on target inventory and service levels. It involves less risk for retailers than VMI, and typically leads to a more stable and long-term relationship between suppliers and retailers than quick response does.

Vendor Managed Inventory (VMI) System

Here the supplier decides on the appropriate inventory levels of each of the products and the appropriate inventory policies to maintain these levels. This type of relationship is being used in Wal-Mart and P&G, whose partnership began in 1985. It has dramatically improved P&G's on-time deliveries to Wal-Mart while increasing inventory turns. This system is more integrated than the previous two systems, and requires a high level of trust between the supplier and the buyer. If implemented properly, VMI can lead to more overall system savings than the other two types of partnerships. However, VMI requires more commitment initially, and significant investment in information infrastructure, time and personnel. The VMI process brings benefits for both retailers and suppliers. The strategic alliance relationship depends on the following:

• Advanced information systems
• Top management commitment
• Trust amongst the partners
• Inventory ownership

For an agreement to be successful, performance measurement criteria must also be agreed to. These criteria should include non-financial measures as well as the traditional financial measures. For example, non-financial measures could include POS accuracy, inventory accuracy, shipment and delivery accuracy, lead times and customer fill rates.

When entering into any kind of strategic alliance it is important for both the parties to realize that there will be problems that can only be worked out through communication and cooperation.

DISTRIBUTOR INTEGRATION

Distributors form an essential link in the firm's marketing channel and are often the repository of vital market information. In the case of manufactured goods, distributors or dealers not only sell the product of the firm, but also perform vital functions like after-sales service, financing and promotion. The traditional role of the distributor is now being challenged, however, as competition in the marketplace requires greater service level and a quicker response time.

The distribution strategies are based on the premises of making goods available to customers at the right place at the right time and at the least cost. These strategies aim at high level of service commitments on the part of organization. The modes of transportation for distribution are typically road for its flexibility, and door-to-door transportation is absolutely essential for distribution management. For the cost reduction firms choose rail or waterways as a mode of transportation. Air is also used in case of high-value item and for emergency deliveries.

In the distribution process, the role of warehouses cannot be ignored. The effectiveness of marketing decisions depends on the decision on warehousing. The capacity and the inventory level in the warehouse support in the success of distribution strategies. Today, the trends in distribution are driving shipment size even smaller and smaller with increasing frequency of delivery.

In general, firms adopt various strategies for distribution such as direct delivery to customer, delivery through warehouse or cross-docking. Each is having its positives and negatives. The product market configuration will decide the strategy to be adopted.

Distributor integration is one type of vertical integration, that is, forward vertical integration. In forward vertical integration, the company sets up subsidiaries that distribute market products to customers or use the products themselves. An example of this is an exclusive distribution channel. In distributor integration, parts are shared across the distributor network and specialized service requests are steered to appropriate dealers or distributors. For a successful distributor integration, the following points are necessary:

• Trust
• Commitment
• Manufacturer's support

Benefits of distributor integration are economics of scale and scope, cost reduction, competitiveness, higher degree of control over entire value chain which leads to reduction in threat from powerful suppliers and synchronization of supply and demand along the chain.

One of the best examples of vertically integrated companies is the oil industry (HPCl, IOC, Reliance Petroleum). They are active all the way along the supply chain from locating crude oil deposits, drilling and extracting crude, transporting it around the world, refining it into petroleum products to distributing the fuel to company-owned retail stations, where it is sold to consumers.

LEGAL CONTRACT

The firms outsource the supply chain operations to 3PL or 4PL firms for building competitiveness. In addition, other expectations in alliance are value addition in customer value delivery process, divert the risk and reduce liabilities. The alliance partner has to organize assets, add manpower, hire facility on lease or purchase it outright. To safeguard their interest and for smooth running of relationship, alliance partners usually enter into a legal contact or agreement, which is binding, on them. The following are the major points covered in such an agreement:

• Date and place of the agreement
• Names and addresses of the contracting parties
• Scope of service
  • Geographical coverage
  • Logistical services (in parts or full)
  • Management and usage of the customer's existing logistics assets
• Payment terms
• Delivery requirements
• Extra services from service providers
• Charges of the service offered
• Value proposition by service provider
• Damage liability
  • Loss (Due to fire, pilferage, rains, accident, floods, act of nature, negligence, ageing, etc.)
  • Insurance
  • Damage calculations basis
  • Demurrage due to delays in loading and unloading
  • Consequential damages
• Responsibilities
  • Employees
  • Assets management (office, facilities, equipment, etc.)
  • Warehouse management
  • Inventory management
  • Transportations
  • Communication
• Performance measurement criteria
• Risk sharing
• Termination of contract
• Notice for claims and filing suits
• Authority for settling dispute
• Notice period
• Governing laws
• Jurisdiction

In a nutshell, a strong and well-written agreement shall often encourage healthy relations between alliance partners.

ISSUES IN STRATEGIC ALLIANCE

The service providers help the business corporation to achieve two goals: to reduce the operating cost and to increase the revenue. As the service provider organizes the required assets, the investment in owning the assets on the part of customer is reduced; this in turn allows the firm to invest in more productive activities and get more returns on the remaining assets and enhance the return on stock holders’ investment. The alliance with the service provider will free the company's manpower for more productive work and concentrate on the area of core competence to get more returns. The firm gains on knowledge because of exposure and acquaintance to the best available practices and technologies, which are used by service providers. With these value propositions, the decision on logistics outsourcing can be justified.

To gain competitiveness, business organizations normally review their business processes to deliver the value to their customer and develop the competitive advantage. Many of them start outsourcing the non-core-competency areas to the experts who promised to do the job at reduced cost and simultaneously bring effectiveness and efficiency in the operation. As many of the Indian firms are in learning phase of outsourcing, they ignored the other critical issues which resulted into breaking the partnership with logistics service supplier within a short period and then they started looking for other options. The following are the few major issues² which need to be addressed and examined before deciding on 3PL or 4PL partnering:

• Switching cost
• Degree of control
• Human and electronic interface
• Tuning logistics services to the needs of channel partners
• Degree of outsourcing
• Legal aspects

Switching Cost

Outsourcing the processes results in reorganization of the existing assets (warehousing and transportation fleet if any) of the company to tune to the working methodology of the service provider. This includes:

• Management of existing assets fully or partly by the service provider.
• Deployment of the existing assets on lease to service provider.
• Divest the existing assets and fully switch over to the usage of logistics infrastructure provided by the service provider.

In each of the above case, a high element of risk is involved. Even though, outsourcing of services reduces the logistical cost substantially, but switching over to other service provider or to the original system in case of breaking away of partnership, will cause much more loss in terms of time in stabilizing the new system, customer service below the customers expectation level during transition period, erosion of customer base due to element of unreliability in the service experienced by the clients.

Degree of Control

The outsourcing firm has to be particular about its degree of control, on activities of service provider to get the service desired by the end user. Direct control over the activities of the service provider's employees is not possible, but he should ensure timely availability of information to monitor the activities. It is better to develop a system to have the required information available without involvement of service provider's employee.

Human and Electronic Interface

For the smooth working of two organizations together in partnership, to achieve a common goal, the proper coordination through the intelligent interface is essential. As the working culture differs, there is a mismatch in degree of empowering the employees, speed and flexibility in taking the decisions, precision in operations, technologies used and access to confidential information. There are numerous examples of failures in other areas like acquisitions and mergers due to mismatch of culture and also due to some of the factors indicated above. Hence, proper interface between the employees of both the organizations is essential to resolve the issues raised out of misunderstanding, or miscommunication. For example, empowering the service provider to take decisions (with proper guidelines) on damaged goods during transit shall reduce delays in taking decisions through joint inspection by customer and manufacturer. This will help in building the confidence of the customer in service level of the supplier. However, the job of coordinators from both organizations is very crucial to formulate the policies and guidelines for the smooth operation of the outsourcing firm and service provider. The coordinator should be empowered to take spot decisions to resolve the issues immediately before it assumes ugly shape resulting into customer complaints.

Secondly, the problem may arise out of the mismatching of technologies being used at outsourcing firm and the service provider's end. For example, most of the third-party service providers of foreign origin in India are experts in EDI, but unfortunately the majority of Indian firms (barring from MNCs and large Indian business houses) do not have proper interface to take advantage of this latest technology. The result is performance below the expectations, which is promised at the time of alliance agreement. Similarly, the differentials in technologies used in communications, material handling, storage arrangements, inventory management may create delays, errors, and mistakes resulting into the performance far below the expected level.

Tuning Logistics to the Needs of Channel Partners

Logistics service standards are to be quantified as per the requirements of the channel members who in turn service the end users/consumers. For efficient channel management, logistics acts as a key enabler. In fact, channel and logistics management should go hand-in-hand for effective and efficient physical distribution system. Meshing of the two requires good coordination and intelligent interface. As pointed out by Bert Rosenbloom (1999)³, there are four major areas of interface between channel and logistics management.

• Defining logistics standards as required by the channel members
• Designing the logistics programmes as per the standards
• Implementation of the programmes
• Monitoring of the programmes

Any logistics programme beyond the demand of channel members makes mismatch in the system and invariably increases the cost of operations without any tangible benefits. The marketers or manufacturers should determine the type and level of logistics service required by each of its channel members such as wholesalers, distributors and retailers. For example, ITC, an Indian cigarette giant, serves the pan shop (100, 000 nos.) twice a day through its wholesaler, looking into his daily sales and financial capacity to purchase goods against cash. As against this, large distributors are served once a week with full truck loads from the factories. The proper implementation of the designed logistics programmes as per the standard required and defined will enhance the confidence level of the channel members in servicing his clients. Proper implementation of such programmes through the logistics service provider, who is invariably not so conversant with the company's channel culture and channel policy, requires an intelligent interface for the integration of the service provider with channel structure. At last, the monitoring of such a programme through periodic audits becomes necessary for synchronizing the operations to achieve the common goal. The mismatch shall lead to breaking the partnership.

Degree of Outsourcing

Business organizations resort to outsourcing in parts or in totality depending on the following.

• Existing infrastructure of the company
• Company's product portfolio
• Management policy for third-party involvement
• The anticipated benefits

Limited involvement of the service provider may be for only regional operations or for transportation or for warehousing and will come in the way of identifying the source of mistakes in the event of complaints at the customer end. In such cases, it is better to have an action plan for trouble shooting of anticipated problems. The areas of responsibilities and authority should be clearly demarked at both outsourcer's and service provider's end. Hence, with more degree of involvement of service provider, he should be given a free hand to resolve complaints and curtailment. He should be given access to the company's knowledge pool if so required; even the firm feels it is a guarded secret. If not done so, it will become a road block in customer satisfaction.

Legal Aspects

For reverse logistics of rejected goods at customer end during warranty period or goods wrongly dispatched, or return of goods damaged during transit, the policy guidelines have to be prepared to sort out the excise and sales tax problems. The responsibility and authority of the persons (from both the organizations) dealing with the government authority have to be clearly demarked to avoid the legal trap.

REVIEW QUESTIONS

1. ‘Alliances in supply chain will considerably enhance the competitiveness of an organization.’ Explain.
2. What is ‘Third-party logistics’? Explain its role in the supply chain.
3. Discuss the various issues in strategic alliances.
4. ‘Fourth-party logistics is the extension of third-party logistics with value addition.’ Explain.

INTERNET EXERCISES

1. For studying the solutions, for logistics outsourcing visit http://www.ups-scs.com/support/logistics-outsourcing.html
2. Visit http://www.findarticles.com, for studying strategic alliances scope, challenges and issues.
3. Visit http://www.logisticsviewpoints.com/category/logistics-outsourcing. This site provides logistics professionals with clear and concise analyses of Logistics Trends, Technologies and Services.

PROJECT ASSIGNMENT

1. In the mobile telephony service supply chain, companies like Reliance, Vodaphone, Tata, etc., enter into strategic alliances to gain competitive advantages. Take up any company and study the nature of alliance and how they leverage it to competitive advantage.

VIDEO LINKS

1. Supply chain collaboration—Professor Richard Wilding http://www.youtube.com/watch?v=K68zKQFRmec&feature=related
2. Logistics outsourcing—great insights http://www.logisticsbureau.com.au/video-supply-chain-logistics.htm