A Case Study Analysis on the Strategic Alliances of Audio

A Case theater Analysis on the Strategic Alliances of sound duplicate Services, Inc. (ADS) Abstract Logistic strategy is vital part of companys goal to reduce embody, gain more profit and improve supplier-customer relationship. This paper examine the logistic process of Vanity Products to have a grasp of how logistic works and affects the flow of supply chain. Guide questions are answered to have a bump understanding on the logistic and warehousing and how these decisions must be well thought.Evaluation, conclusions and recommendation are done to know the best alternative for Vanity Products. knowledgeability Background and Significance of the Study The strategic decision with regards to bail bonds is an option for tightens to improve and strengthen their respective firms. Strategic alliances is said to be a multi-faceted, goal orient partnerships of companies in which for each one shares resources and rewards but the risks involved is also shared.In deciding whether such alliances will help your firm, several factors should be considered. These factors are, if this would add value to the harvest-festivals, if this would improve the firm market access, if this would strengthen the operation, if this would enhance strategic growth and organizational skills, and if this would build the firms financial strength. The decision if one firm should make an alliance to another company is something that is thought thoroughly.This strategic alliance is a very big step for any firm and the firm should be very sarcastic in making such decisions beca utilization the benefits are high and so the risks in this kind of arrangement. Objective of the Study This study aims to 1. Study and analyze the strategic alliances of Audio Duplication Services, Inc. (ADS) 2. Evaluate the alternative of ADS on its logistics attention 3. Study and analyze the benefits of Vendor-managed schedule(VMI) Key Terms to Remember * Shipping Cost Third Party Logistics- the use of outside company to fork up for a particular services to perform all or part of the firms material management and product distribution functions * Strategic Alliances agreement among firms in which each commits resources to achieve a common set of objectives * Vendor-Managed Inventory (VMI)- a family of business models in which the buyer of a product provides certain information to a vendor Results and Discussions Case Questions 1. Why are ADSs customers customers moving towards VMI arrangements? ADSs customers customers (i. e. etailers) are moving towards the VMI arrangement so that the likelihood of being out of stock is reduced and the inventory level in the supply chain is also reduced. This will be achieved because through VMI the retailers could provide a continuously updated point-of-sale (POS) to the record companies. By then, the decisions that will be made by the record companies like how much of each album, CD, and cassette title is delivered 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 reinforcement of this situation?This decision on VMI arrangement will have a big impact on ADS. The ADS management should take advantage in the new 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 clock time. 3. How should ADS manage logistics? The ADS should manage logistics by hiring a third party logistics to manage the logistics in their supply chain. This decision is based on several indicates.One of these is that managing logistics is not one of the expertises of ADS Company and by hiring a third party logistics the ADS Company could now focus on their competency of cassette duplication. Also, the new arrangement of direct shipping to the stores would incur higher shipping cost for ADS because of a more complicated route that unlike before there is a distribution center where the products are shipped in this situation it is very sensible for them to hire a third 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 dispirit into the specific stores where it is needed on time and with the right quantity. Also, direct shipment model is important in a business to reduce the lead time especially for a company whose nature is already changing due to the changing technology.Conclusions, Recomme ndations, References, and Other Details Conclusions Ultimately, a business organizations goal is to make profit. But one cannot forsake the quality of the product as well as the satisfaction of customers. In this case, the customers of Vanity Products made changes in basis of ordering 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 different warehouses will be established near the customers. In the long-term, it is beneficial to the company because it decreases the cost in terms of transportation. Recommendations From the main discussion, Toms proposal is the best course for Vanity Products. The requirement of the customers that the products be delivered within five days will be met.At the same time, the cost of VP will be lower c ompared to that of delivering less than truckload quantities to a specific store or using a peddle run method acting 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 Toms proposal. References (1)J. Heizer and B. Render. (2010). operations Management. Tenth Edition. New Jersey Prentice-Hall, Inc. (2) Munley. com. Truck Accidents Glossary. Retrieved February 4, 2013 at http//www. unley. com/truck_glossary/legal_glossary_p. html (3) Businessdictionary. com. Freight Costs. (2012) Retrieved February 4, 2013 at http//www. businessdictionary. com/definition/freight-cost. html Other Details A Case Study Analysis on the Strategic Alliances of Audio Duplication Services, Inc. (ADS) IE 191 Section V Date of Submission March 21, 2013 Contributors Signature Members Josol, Patricia Beatriz ___________ Palomar, Romelyn Mae ___________ Tena, Mara Alyssa ___________