The need for a strategic alliance among partners in supply chain is largely associated with the benefits involved therein. This strategic partnership provides various benefits to the partners in supply chain as well as the end users of products being supplied. In this regard strategic alliance is necessary since it makes it possible and convenient for each of the partners involved in supply chain system to focus of different points and stages. Moreover, the aspect of strategic alliance significantly contributes towards the development of various competencies as well as opportunities for partners to learn from each other within the supply chain system (Benton, 2014).
Protection and suitability of resources involved in the process of supply is significantly maintained in instances where the formation and operation of strategic alliances take place among supply chain partners. To this extent, considerable financial benefits are often realized owing to the development of low-cost supply models. An example of successful strategic alliance among supply chain partners is the one that involved Western Publishing partnering with VMI to facilitate its Golden Books line handling children’s books supply to several retailers. Strategic alliance among different partners within the supply chain plays a critical role in enhancing the synchronization and dependability of the simultaneous stages that for part of supply chain operations ( Benton, 2014).
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In cases where different organizations are involved in a supply chain system, the concept of strategic alliance allows for effective use of the resources involved which include distribution channels, capital equipment, expertise, products and project finding among others. There are different ways through which a project manager may utilize of strategic alliance in projects that are concerned with the management of purchasing and supply (Benton, 2014). In this respect, the strategy involves the purchasing components and raw materials that are crucial in supporting the process of production. As such, the repetitive purchases involved are controlled within prices that are reasonable and fair to different purchasing and supply partners.
References
Benton, W.C. Jr. (2014). Purchasing and supply chain management (3rd ed.). New York, NY: McGraw-Hill Irwin
