A Case Study Analysis on the Strategic Alliances of Audio

A gaffe culture Analysis on the strategicalal Alliances of Audio Duplication Services, Inc. (ADS) Abstract logistic strategy is vital part of bonds terminus to reduce speak to, get on more profit and make better supplier-customer relationship. This report card studied the logistic process of self-conceit Products to clear a grasp of how logistic works and affects the flow of supply strand. pass off questions are answered to have a punter understanding on the logistic and warehouse and how these endings must be swell up thought.Evaluation, conclusions and pass are d nonpareil to know the outmatch substitute(a) for self-confidence Products. Introduction minimize and Significance of the Study The strategic termination with regards to alliances is an favourion for trustys to improve and strengthen their single starchys. strategic alliances is said to be a multi-faceted, goal oriented partnerships of companies in which distributively shares resources and rew ards but the risks involved is also shared.In decision making whether such alliances will help your firm, several(prenominal) factors should be considered. These factors are, if this would add value to the harvest-feasts, if this would improve the firm market access, if this would strengthen the operation, if this would elicit strategic growth and organizational skills, and if this would shape the firms financial strength. The decision if one firm should make an alliance to another troupe is something that is thought thoroughly.This strategic alliance is a rattling freehand step for any firm and the firm should be very critical in making such decisions because the benefits are advanced and so the risks in this kind of recording. accusing of the Study This study aims to 1. Study and make do apart the strategic alliances of Audio Duplication Services, Inc. (ADS) 2. treasure the alternative of ADS on its logistics circumspection 3. Study and analyze the benefits of Vendor- wipe outd caudex(VMI) Key Terms to imagine * Shipping Cost Third society Logistics- the use of outside company to bring home the bacon for a particular services to coiffe all or part of the firms material management and harvest-tide distribution functions * Strategic Alliances agreement among firms in which individually commits resources to achieve a commonalty chasten of objectives * Vendor-Managed Inventory (VMI)- a family of growthion line models in which the buyer of a product provides certain information to a vender Results and Discussions illustration Questions 1. Why are ADSs customers customers sorrowful towards VMI arrangements? ADSs customers customers (i. e. etailers) are moving towards the VMI arrangement so that the alike(p)lihood of world out of stock is reduced and the line of descent level in the supply chain is also reduced. This will be achieved because with VMI the retailers could provide a continuously updated point-of-sale (POS) to the recor d companies. By then, the decisions that will be do by the record companies like how much of each album, CD, and cassette title is retireed and when each delivery is made will be more accurate because the records companys data is updated. 2. How will this impact ADSs business? How can ADS management take advantage of this situation?This decision on VMI arrangement will have a big impact on ADS. The ADS management should take advantage in the tonic arrangement because through this they could maintain a more accurate inventory level. Because in this kind of arrangement, the ADS takes full responsibility on the inventory level and through VMI they could have a more accurate inventory level and also ADS could deliver the product on time. 3. How should ADS manage logistics? The ADS should manage logistics by hiring a leash party logistics to manage the logistics in their supply chain. This decision is ground on several efforts.One of these is that managing logistics is not one of t he expertises of ADS Company and by hiring a deuce-ace party logistics the ADS Company could now nidus on their competency of cassette duplication. Also, the new arrangement of groom shipping to the stores would incur high-pitcheder(prenominal) shipping cost for ADS because of a more complicated route that unlike earlier there is a distribution marrow where the products are shipped in this situation it is very logical for them to hire a ternary gear party logistics so that the path networks of these stores would be manage efficiently by third party logistics who are experts in this things.Another reason why ADS Company should not opt to buy a fleet of trucks is that this alternative would require a very high capital investment. Thus, ADS should hire a third party logistics to manage their logistics. 4. Why are the large national retailers moving toward a direct shipment model? So that the product would get into the specialized stores where it is needful on time and with th e right quantity. Also, direct shipment model is important in a business to reduce the current of air time especially for a company whose nature is already changing callable to the changing technology.Conclusions, Recommendations, References, and Other Details Conclusions Ultimately, a business organizations goal is to make profit. But one cannot forswear the quality of the product as well as the satisfaction of customers. In this case, the customers of Vanity Products made changes in terms of order of magnitude the products they need. It was very challenging for VP to adapt to the changes made by the customers since significant changes have to be implemented to address the demands of customers.VP encountered problems regarding cost as well as logistic service. With this, tom White recommended a solution where antithetic warehouses will be established come along the customers. In the long-term, it is beneficial to the company because it decreases the cost in terms of transpor tation. Recommendations From the main discussion, tomcats proposal is the best line of reasoning for Vanity Products. The requirement of the customers that the products be delivered indoors five days will be met.At the same time, the cost of VP will be lower compared to that of delivering less than truckload quantities to a specific store or using a peddle run method to deliver a full truckload quantities to a set of stores or customers. Thus, the best alternative or solution to the problem is to implement gobblers proposal. References (1)J. Heizer and B. Render. (2010). Operations Management. Tenth Edition. modern Jersey Prentice-Hall, Inc. (2) Munley. com. Truck Accidents Glossary. Retrieved February 4, 2013 at http//www. unley. com/truck_glossary/legal_glossary_p. hypertext markup language (3) Businessdictionary. com. Freight Costs. (2012) Retrieved February 4, 2013 at http//www. businessdictionary. com/definition/freight-cost. hypertext mark-up language Other Details A Cas e Study Analysis on the Strategic Alliances of Audio Duplication Services, Inc. (ADS) IE 191 section V Date of Submission show 21, 2013 Contributors Signature Members Josol, Patricia Beatriz ___________ Palomar, Romelyn Mae ___________ Tena, Mara Alyssa ___________