Supplier alliance Success and Failure. Balestrieri Luca Rossi Valeria Santoro Flavia IBD 2013-2014. How did we end up with supplier alliances?. Two main concepts led to the born of supplier alliances: Specialization Comparative advantage. Adam Smith, 1776 Labour division.
”One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head: to make the head requires two or three distinct operations: to put it on is a particular business, to whiten the pins is another ... and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which in some manufactories are all performed by distinct hands, though in others the same man will sometime perform two or three of them.”
“We’re only as strong as the communities in which we trade, so it makes good sense for us to be a fair partner – paying a fair price to suppliers, supporting local communities and ensuring good working conditions for everyone involved in our supply chains.”