Spek/DavFM.qrk 7/12/03 8:14 PM Page i Endorsements Spek/DavFM.qrk 7/12/03 8:14 PM Page ii In an increasingly competitive world, it is quality of thinking that gives an edge, an idea that opens new doors, a technique that solves a problem, or an insight that simply helps make sense of it all. We work with leading authors in the various arenas of business and finance to bring cutting-edge thinking and best learning practice to a global market. It is our goal to create world-class print publications and electronic products that give readers knowledge and understanding they can apply while studying or at work. To find out more about our business products, you can visit us at www.ft-ph.com Spek/DavFM.qrk 7/12/03 8:14 PM Page iii TThhee EExxtteennddeedd EEnntteerrpprriissee:: GGaaiinniinngg CCoommppeettiittiivvee AAddvvaannttaaggee tthhrroouugghh CCoollllaabboorraattiivvee SSuuppppllyy CChhaaiinnss EEddwwaarrdd WW.. DDaavviiss Oliver Wright Professor of Business Administration RRoobbeerrtt EE.. SSppeekkmmaann Tayloe Murphy Professor of Business Administration Darden Graduate School of Business Administration University of Virginia Charlottesville, VA 22901 An Imprint of PEARSON EDUCATION Upper Saddle River, NJ • New York • San Francisco • Toronto • Sydney Tokyo • Singapore • Hong Kong • Cape Town • Madrid Paris • Milan • Munich • Amsterdam www.ft-ph.com Spek/DavFM.qrk 7/12/03 8:14 PM Page iv Library of Congress Cataloging-in-Publication Data Davis, Edward W. (Edward Wilson), 1935- The extended enterprise: supply chain alliances, strategic partnerships, and why your company can no longer afford to go it alone / Edward W. Davis and Robert E. Spekman. P. cm. Includes bibliographical references and index. ISBN 0-13-008274-0 1. Strategic alliances (Business) 2. Business networks. 3. Business logistics--Management. 4. Competition. 1. Spekman, Robert E. 11. Title. HD69.S8D392 2004 658'.044--dc2l 2003053153 Editor-in-Chief: Timothy C. Moore Editorial/Production Supervision: Donna Cullen-Dolce Development Editor: Russ Hall Manufacturing Manager: Alexis R. Heydt-Long Manufacturing Buyer: Maura Zaldivar Cover Design Director: Jerry Votta Cover Design: Anthony Gemmellaro Interior Design: Gail Cocker-Bogusz Composition: Daly Graphics © 2003 Prentice Hall PTR Publishing as Financial Times Prentice-Hall Upper Saddle River, NJ 07458 Financial Times Prentice Hall offers discounts on this book when ordered in quantities for bulk pur- chases or special sales. For more information, please contact U.S. Corporate and Government Sales: 1-800-382-3419, or [email protected]. For outside the United States, please contact International sales: 1-317-581-3793, [email protected]. Any company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America 1st Printing ISBN 0-13-008274-0 Prentice-Hall International (UK) Limited, London Prentice-Hall of Australia Pty. Limited, Sydney Prentice-Hall Canada Inc., Toronto Prentice-Hall Hispanoamericana, S.A., Mexico Prentice-Hall of India Private Limited, New Delhi Prentice-Hall of Japan, Inc., Tokyo Pearson Education Asia P.T.E., Ltd. Editora Prentice-Hall do Brasil, Ltda., Rio de Janeiro Spek/DavFM.qrk 7/12/03 8:14 PM Page v Series page to be supplied by editor Spek/DavFM.qrk 7/12/03 8:14 PM Page vi Series page to be supplied by editor Spek/DavFM.qrk 7/12/03 8:14 PM Page vii Series page to be supplied by editor Spek/DavFM.qrk 7/12/03 8:14 PM Page viii Series page to be supplied by editor Spek/DavFM.qrk 7/12/03 8:14 PM Page ix C o n t e n t s Preface xi Acknowledgements xix Chapter 1 Introduction 1 The New Competition: The Extended Enterprise 3 Changing the Face of Competition 4 Different Views and Perspectives 11 Life after Price Leverage 16 Beginning the Conversation Needed for the Extended Enterprise 18 Defining the Extended Enterprise 20 Summary 29 Chapter 2 Traditional Views and Where We Have Been 31 Tracing Shifting Priorities 35 Traditional Buyer-Supplier Relationships: The Dark Ages 35 Enter Material Management: The Beginning of the Age of Enlightenment 37 From Materials Management to Supply Chain Management 44 From Supply Chain Management to Extended Enterprise Thinking 50 Summary 52 ix
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