Published by:
Harvard Business Publishing
Length: 7 pages
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Abstract
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.
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Abstract
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.
