Do you think the relationship between Technomagia and AUD would have worked out satisfactorily for both without VMI? Discuss your expected outcomes with and without VMI.

Technomagia and AUD CASE FOR ANALYSIS promenading the hole rodite, dome tweeter problem feedback abb frequacy, composite come for midrange in Bed to the United States six years day chectomi information about AUD'Sales, plugin home sound, Armed with pers Gary Handel (AUD) and Victoria Santos or working as design leader for an aliam company fory is replaced utomatically by Technomagia. Middle and 15 years of experience, he founded his com a regularly correspond and meet to find po Technomas the opposed translation areas for close cooperation, information sharing woond, de ha peste translator delivery, for these two guys to take a new look at this busi "I know that Richris suspicious, but it really is time palabreptio quality and be beneficial to both, Santos says. "The playing todas osiped for conducting and crouch the relationship and how they can address issues that could mond, under the name of think it will til Brasimo finds a way to reduce his de "But the relationship has not changed and I don't dece on AUD. In the meantime, flexibility, information atual carrently accooning for 50 part of sharing and reconsidering a range of cost-efficient options the small applier's business. The initial agreement with important, Handell admits, "But we have to start with ALD ground the current business relationship the discussion of whether AUD calls all the shots between dels service and delivery, Technomapu relies heavily changed. Technomagiais stronger." cong a solid relationship with AUD, a mana- CEO Martin Richt. AUD was the company first con our two organizations." friend treat of orders that has enabled Bras "Yes, and that discussion must include logistical in touch economy, to add workers over the last three years. Branimo loves the reliability of selling is Santos says. "Delivery, the disagreements about the pallets .... 10 AUD, but he sometimes questions whether the busi- news manship is verbalance in favor of the power "Right set up all of that initially-what would work falecturer best for delivery to AUD," Santos says. "But Brassimo "Wank in the beginning Right played his hand well, insists that PM rather than AM pick-ups would be better keng that we were a startup and trying to secure a solid and that a change in pallet companies, from Bradley Pack customer bove. In my express to get the contract and in aging to Eastmont Packaging, would cut costs per trip by trying to please the head of a big company. I found myself reducing mileage. Plus, Eastmont has a new custom-made uying "Yes and carrying out his wishes and demands, pallet that provides greater load stabilization necessary became by us, our biggest customer. I think he got would be shared with AUD." camino diecase we were a young company and for high-tech components. The savings for Technomagia the habit of suming the focus would remain on his "But Beadley has a long-time business relationship of rede and Nu polits throughout the business relationship its own with AUD," Handell points out. So, with our founder as a company, Ithat it So, what we're saying here is that it is not just a time to be great the relationship between the two discussion about these two organizations, but a consider ation of the whole supply chain. The cost of lost flexibility Right in satisfied with the prosent arrangement he has the lack of shared information. It's costing both of them Technapa and sees himself as both partnet and And the sudden spikes in production requests by AUD in as an be revendly explained in collegor. "Bravimo response to its retail customers, create unnecessary prob came to this country and started his company and I was lems in production planning at Technomagia and unnes peable for him to grow his company. I think it worked companies le lac bio can set up our location, and make etsary stress for the management and workers at both Every well for AUD And now he talks about wanting to troton to change Although the relationship and dialogue at the top to-both short and long-tange needs. change the way we do dingspicious about what brings value to both sides, Handell says. Through this VMI could be a powerful tool that empowers and hasil beds more than wed myten, Technomasis will be able to create orders for a Look, good upplier les lots of vines based on direct access to our orders and demand informa en levd is raised, levd at both cost-efficient way to manage and deliver the inven And then, we can work together, determining the companies do and are ca toplote and intory." Santos contos. We'll look at the entire supply vond inventory (VMI) that chain to Vwhere changes and even minor tweakes can build purpo strong interdependence quity be made to bring down costs and make the partnership Towed of unde puchonders, Viesumbat there would have to be cqual give and take Chapter 5: terorganizational Relationships Flexibility on both sides is necessary to make this real integration of Technomagia and AUD point of sale Nobody has to be right work Handell point-out "This is not a competition system. That will offer optimal cor sharing and real time sales data, allowing us to stay ahead of the curve in pro- But serting tonnagement on board to make this doction planning as well as logistics to meet AUDY needs work is our real challenge, Santos says. And we have in real time." to start looking ahead. VMI could be a stepping stone to *So, what's our next step? Handell asks "How can Jointly Managed Inventory UMI), an even deeper collab- we make this happen?" oration, allowing the increased tactical planning and the Questions 1. What is the role of the resource dependence and collab- orative network perspectives in this case? Explain your reasoning 2. Do you think the relationship between Technomagia and AUD would have worked out satisfactorily for both without VMI? Discuss your expected outcomes with and without VMI 3. Why do think Brassimo and Right have different per spectives on the need for a change in the relationship between their businesses? CASE FOR ANALYSIS Bradford Chemicals Company Bradford Chemicals manufactures high-quality plastics The governor was thrilled with Bradford's decision and resins for use in a variety of products, from lawn orna- to build the new shop in Beatty and he urged Header sents and patio furniture to automobiles. The Bradford son to immediately begin working closely with local and plant located near Beatty, a town of about 45,000 in a state officials to circumvent any potential problems. It was Southeastern state, employs about 3,000 workers. It plays essential, he stressed, that the project not be bogged down an important role in the local economy and, indeed, that of or thwarted by contact among different interest groups, the entire state, which offers few well paying factory jobs. as it was too important to the economic development of in carly 2004, Sam Henderson, plant manager of the the region. Governor Winchell assigned Beth Friedlander, Beatty facility, notified Governor Tom Winchell that Brad- director of the Governor's Office of Economic Devel- ford was ready to announce plans for a major addition to opment, to work closely with Henderson on the project. the factory-a state-of-the-art color lab and paint shop However, Winchell was not willing to offer his commit- that would enable better and faster matching of colors to ment to help push through the rezoning, as he had been customer requirements. The new shop would keep Brad- an enthusiastic public supporter of environmental cases. ford competitive in the fast-paced global market for plas- Following his conversation with Governor Winchell, hes, as well as bring the Beatty plant into full compliance Henderson sat down to identify the various people and with updated U.S. Environmental Protection Agency (EPA) organizations that would have an interest in the new color regulations lab project and that would need to collaborate in order for Plans for the new facility were largely complete. The it to proceed in a smooth and timely manner. They are as biggest remaining task was identifying the specific lock follows: tion. The new color lab and paint shop would cover approximately 25 acres, requiring Bradford to purchase Bradford Chemicals Kese additional land adjacent to its 75-acre factory cam pa Henderson was somewhat concerned with top man. ment's preferred site because it fell outside the current Mark Thomas, vice president of North American Op- destrial Zoning boundary, and, moreover would neces- erations. Thomas would be flying in from Bradford's teate destruction of several 400 to 500-year-old beech Michigan headquarters to oversee land purchase and negotiations regarding the expansion. Sam Henderson, Beatty plant manager, who has spent his entire career at the Beatty facility, beginning on the factory floor fresh out of high school. Wayne Talbert, local union president. The union is strongly in favor of the new shop being located in Beatty because of the potential for more and higher . The owner of the property, a nonprofit agency, was to vil, whereas property located on the other side of Beropes might be more difficult to obtain in a timely Storadiord was on a tight schedule to get the pro picted. If the new facility wasn't up and running in y manner, there was a chance the EPA could force Bed to stop using its old process-in effect, shutting wage jobs. Sew the factory