Topic > Importance of the Logistics Alliance - 3038

Assignment 1Strategic Logistics Allianceexpress. transport. logisticsGROUPSohail Rahim 7576Mirza Anas Baig 7565Hafiz Hassaan Pirzada 7566Submitted to: Sir SOHAIL MAJEEDLogistics AllianceIn a literal sense logistics alliance provides transportation services to organizations. This is a formal relationship between the organization and the logistics service provider that provides a range of transportation-related services and activities to the organization. Thus, they establish a long-term relationship with each other. This may start from a small set of activities, but there is potential as the set of activities can grow in both size and number creating value for the organization. For example, packaging, supply chain integration, etc. The need for a logistics alliance starts from the point where a manufacturer or service provider has to transport its product or service respectively over large distances to the actual buyer of that product or service. They find it difficult to acquire vehicles, resources and perform the management tasks necessary to establish an effective supply chain while managing costs. Therefore, these companies approach logistics service providers and establish a logistics alliance with them that helps them integrate their business functions by providing them with supply chain operations. The logistics service provider not only helps companies manage and deliver their products but also provides essential business consultancy to get ahead of their competition in the market. Critical Success Factors for Logistics Alliance • Trust • Cooperation • Communication Types of Alliance • Opportunistic Alliance • Complementary Strategic Alliance • Third Party Logistics (3PL)‎• Fourth Party Logistics (4PL)‎• Retailer-Supplier pa .... .. middle of paper ...... iances. Therefore, the primary objective of this research was to gain a better understanding of logistics alliances by examining the roles of trust and commitment in such relationships. A logistics alliance model is first proposed and then empirically tested from the perspective of the buying firm. The following specific research questions were addressed: 1. To what extent are trust and relational commitment important elements in logistics alliances from the buyer's perspective?2. What factors influence the development of a buyer's trust and relational commitment in logistics alliances?TERMINOLOGYLogistics alliance relationships are described in various ways. To provide some continuity in reporting research findings, a definition of logistics alliance was developed drawing on previous research on interorganizational exchanges and logistics relationships..