Tough competition is forcing managers to view their distribution channels as an untapped opportunity. The prevalence of strategic alliances has made managers more willing to explore new ways of working together. And developments in shared information systems and integrated logistics systems make such cooperative efforts more practicable. The potential benefits of such partnerships are enormous. As redundant pools of inventory and duplicate service operations are pared back, costs fall.
Less business is lost because of stockouts and the inability to respond to emergencies.
Moreover, participants capitalize on new business opportunities because they can offer a broader selection of products and services than they could on their own. They can also heighten customer satisfaction by augmenting their own capabilities with those of more proficient partners. All rights reserved .