Americans pride themselves on being innovative and self-sufficient, yet we are team players rallying together for higher purposes such as charitable giving and the defense of our country. So too businesses find that aligning themselves with other businesses often creates synergies such as reduced costs and increased sales.
General Electric and Cisco are two prime examples of companies that have achieved great success through alliance formation. Cisco has fourteen IT alliance partners, all customer-centric focused and charged with jointly developing next generation solutions. This keeps Cisco in the forefront of its industry.
With the fundamental economic shift in Michigan's manufacturing base over the past decade there have been hardships. However, with change come opportunities for those companies willing to employ new strategies. In this do-or-die environment Michigan's Center for Automotive Research (CAR) has two "must do's" for Michigan's tool and die industry and small parts manufacturers: adopt lean practices and form strategic partnerships.
CAR's report to the Michigan Economic Development Corp. points out the many challenges of developing and implementing formal alliances. To succeed they suggest that alliance members recognize the importance of the effort and dedicate adequate resources. Only strong and compatible partners are part of the group, where each adds a unique quality. And for maximum results they recommend the use of an outside party to facilitate communication and be the single face to the customer.
Adaptive Manufacturing Solutions LLC, a Flint-area company, is a recent example of a strategic alliance formed between 16 companies that have inter-related business capabilities. Formed in 2007, this alliance takes its member companies to a higher level where the group bids on larger, more complex projects in industries other than automotive. They also achieve cost savings through cooperative buying programs and resource sharing.
To bring awareness and stimulate the formation of strategic alliances in our area, a hands-on workshop is scheduled for Feb. 25 in Traverse City. Sponsors of the workshop, the Procurement Technical Assistance Center (PTAC), a not-for-profit, and Government Outsourcers, a local consulting firm, will coordinate the event to show how a group of collaborating companies can position themselves to bid on and deliver projects that otherwise would be sourced to larger, more-diverse manufacturing firms.
A government contract will be used as a case study. In advance of the workshop, participating companies will be given a set of drawings and specifications and asked to prepare a mock bid for their portion of the project. Other project examples also will be discussed that involve trades outside of the scope of the case study project. If you would like to learn more about the workshop, please contact me.
Harley Luplow is a local business consultant and he can be reached at 344-5907 or by e-mail at luplow@mail.com.
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