Transformation of a Supply Chain to a Strategic Alliance for a Knowledge- Based Service: A Case Study

With a need for faster access to new technologies located beyond their boundaries and capabilities, firms may seek strategic advantage from supply chain partners. Strategic alliances are frequently encountered in high technology applications where individual firms lack expertise or the means to embark on uncertain business ventures. Since some products no longer offer distinctive advantage, organisations complement these with innovative services. The strategic challenge is to prevent imitation for as long as possible. This research considers the transformation of a supply chain into an alliance of technology and knowledge-based competencies. The study investigates the management and dynamics of a supply chain comprising a principal partner in the industrial lubrication sector, and a number of partners providing high technology condition monitoring and spares management services. Recognising the value of the data and information emanating from the partners, the principal partner established a knowledge basis for maintenance intervention for clients. The research describes how the original supply chain developed over three years into a knowledge-based service for maintenance, lubrication and spares management. A number of postulates derived from the literature are identified, and evaluated in relation to the transformation of the supply chain into a strategic alliance.