Logistics and Supply Chain Management

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International Logistics & Supply Chain Management
Part 1: Group Case Study – UPS and HP: Value Creation Through Supply Chain Partnerships

1. Explore how a SLA (Service level agreement) both shapes and is shaped by supply chain outsourcing partnerships in the context of the case.

Service level agreements heavily shape and are shaped by the supply chain outsourcing partnership.
The SLA was shaped by the HP/UPS partnership as this is where HP stated particular roles they wanted UPS to play in their business and how they wanted UPS to use their knowledge to further HP’s business.

The SLA shapes the relationship by clearly stating and reinforcing how the two parties should behave and what is expected of them throughout the period of the partnership, for example the scope of services agreed upon by HP and UPS. The SLA provides the parties with the much-needed determination and drive that the two sides require to work harder to meet and surpass targets set out in the SLA. The SLA could both shape the relationship and be shaped by the relationship by showing the individual companies where they have possible downfalls in their practices and workforce. The SLA could be used to focus on these issues and improving them for both parties in the long run of the partnership.

The SLA is shaped by the partnership, as it would be designed with the two companies and their objectives in mind to reach the best achievements/goals for both parties and their businesses. It also is shaped by the partnership as it supplies the companies with the opportunity to look in-depth into their companies and analyse all areas of business. Improving business for both parties and overall creating a better partnership for all involved. The SLA shapes the relationship as it keeps the two companies in line with each other, ensuring their objectives stay the same and are fulfilled throughout the period of partnership. The SLA is both shaped by and shapes the partnership as it...
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