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Strategic Benefits of Logistics Alliances
Logistics alliances are becoming commonplace in business today. Each party involves itself in the operations of the other, to the benefit of both. Often one party is a product marketer (sometimes two or more product marketers) and the other is a distributor or warehousing specialist. Fueling the drive toward logistics alliances is the escalating competitive environment that is forcing businesses to become low-cost competitors in order to keep prices down and maintain customer loyalty. To meld parts of two or more organizations into one smooth-running operation is not easy; turf battles rage. But trust is necessary because each party must not only perform its own task efficiently but also act on behalf of the strategic objective.