Definition Alliance Network. Description.
An Alliance Network is a collaboration between two
or more firms that band together on a loose, non-contractual basis. Many firms
no longer manufacture their products themselves, but have a complex network
of companies which supply them with complex products. Collaboration often
involves the manufacturing process, but can also involve the R&D process,
such as in Pharmacy, or exploration of new geographic markets
Driving forces behind this growing phenomenon are customers'
growing demand for customization, service and speed, fierce global competition,
outsourcing of non-core activities
and, on the other hand, the enabling technologies of the internet and advanced
planning systems. It has become difficult for a single company to compete
alone against these networks in many industries.
Examples include many automotive assemblers (Ford, GM, Toyota)
who order complete dashboards from suppliers, computer assemblers (HP, Dell,
Compaq) who integrate complete ordered main boards along with some peripherals,
clothing (Nike, Benetton), IKEA.
Also called Supply Network.
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What are Supply Networks?
"Supply network does not necessarily mean or require all the suppliers in a network collaborate, some may collaborate for strategic purposes some may also not collaborate for strategic purposes (or the lack of it).
Supply network is an organization's group of suppliers from which an organizer source inputs." |
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Alliance Networks Special Interest Group
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Compare with:
Vendor Managed Inventory
| Coalition |
Co-Creation |
Lean Manufacturing |
Value Chain |
Virtual Business |
Strategic Alliance
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Acquisition
Integration Approaches |
Joint Venture |
Outsourcing |
Vertical Integration
| Disaggregation
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Alliance Networks Sponsor
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Special Interest Group Leader
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