Laura Ashley and Federal Express
This presentation is the property of its rightful owner.
Sponsored Links
1 / 17

Laura Ashley and Federal Express Strategic Alliance PowerPoint PPT Presentation


  • 237 Views
  • Uploaded on
  • Presentation posted in: General

Laura Ashley and Federal Express Strategic Alliance. Team 1 Charlotte Chen Jessica Crane Dave Christensen Emilio Fabico Beau Herman Shane Hunt. Background. Laura Ashley (LA) 18 months of warehouse inventory Availability at 80% (Stock out 20%) Outdated systems

Download Presentation

Laura Ashley and Federal Express Strategic Alliance

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Laura ashley and federal express strategic alliance

Laura Ashley and Federal Express

Strategic Alliance

Team 1

Charlotte Chen

Jessica Crane

Dave Christensen

Emilio Fabico

Beau Herman

Shane Hunt


Background

Background

Laura Ashley (LA)

18 months of warehouse inventory

Availability at 80% (Stock out 20%)

Outdated systems

Extended lead times

Multiple distribution contractors

Delivery problems


Product flows

Product Flows


Background1

Background

FedEx

  • Renowned for logistics expertise

  • Systems

    • Tracking

    • Information

    • Inventory management

  • Desire to develop Pan-European business

  • Transportation network / infrastructure

  • European warehouse space


Strategic alliance

Strategic Alliance??

  • Replace outdated LA systems with FedEx

  • FedEx to manage all aspects of LA distribution

  • FedEx gains entry into Europe and clothing business

  • Develop / Promote new FedEx business model

YES !!!


Areas for concern

Areas for Concern

  • Length of Contract

  • Financial Arrangement

  • Leadership

  • Contract Firmness


Length of contract

Length of Contract

  • Minimum of 10 years

    • Pros

      • Stability

      • Eliminate the need for constant renegotiation

      • Promotes trust

    • Cons

      • Too aggressive for a new business relationship

      • Limited options


Length of contract1

Length of Contract

  • Alternatives

    • 2 year trial agreement

    • 5 year with a 5 year option

  • Recommendation

    • 5 year with a 5 year option


Financial arrangement

Financial Arrangement

  • Cost plus

    • LA pays:

      • Direct costs in managing logistics

      • Freight

      • Management fee (percentage of cost)


Financial arrangement1

Financial Arrangement

  • Pro

    • Simplicity

  • Con

    • Promotes inefficiency

  • Recommendation

    • Performance-based management fee


Leadership

Leadership

  • Stability

    • Success of alliance is heavily dependent upon leadership stability.

    • Pros

      • Maxmin’s level of determination

      • Flexibilty

    • Cons

      • Any change may lead to challenges


Leadership1

Leadership

  • Recommendation

    • Succession plan - Implement a contract stipulation that accounts for the possibility of a change in leadership.


Contract firmness

Contract Firmness

  • “Loose Contract”

    • “Agree to agree” philosophy

    • Outcomes not clearly defined

    • No penalties for failure to perform

    • No incentives for performance


Contract firmness1

Contract Firmness

  • Pros

    • Flexibility

    • Adaptability

    • Encourages “win-win” atmosphere

    • Empowerment

  • Cons

    • Lack of specific direction

    • Lack of contingency plan

    • No consistency in event of leadership change


Contract firmness2

Contract Firmness

  • Recommendation

    • Implement more structured contract

      • Focus on length of contract, financial agreement, leadership issues

      • Implement written incentives and penalty programs

      • Provide contingency plan


Conclusion

Conclusion

  • Good fit for strategic alliance

  • Implement recommendations

    “A partnership is a marriage. No matter how positive, cooperative, and helpful the partners are at the start, it is essential that they see their relationship in the cold light of the practicalities. They have to look at it as if it doesn’t work and walk through the consequences.”


Laura ashley and federal express strategic alliance

Questions???


  • Login