Supply Chain Management 2– TRA 3155
June 28, 2015
CoLinx, LLC is a company formed by four manufacturers in the power transmission industry. The manufacturers formed CoLinx to achieve a common goal, which was to improve service levels. CoLinx is like the “nucleus of a cell,” it is the “control center” of the four manufacturers and is responsible for handling system-to-system transactions, web hosting, warehousing, light assembly, shipping, freight auditing, and import-export operations through a designation as a foreign trade zone (Coyle, 2013). Through the use of CoLinx, each manufacturer is able to improve service levels and reduce costs by …show more content…
The biggest element of the value proposition for the distributor is simplicity. As stated in the example above, distributors can now work with one central command center instead of dealing with each individual manufacturer which makes the whole process much easier and less time consuming. “Distributors can do business with multiple manufacturers through one site, allowing them to respond quickly to their own customers” (Coyle, 2013). Time is money as they say, so having the ability to save time will allow the distributors to make more money by increasing customer base and/or focusing on existing customers and providing the best customer experience to ensure repeat business.
The keys to long-term sustainability of a relationship such as CoLinx are for the manufacturer-members to remember that their involvement and willingness to collaborate with its competitors is for the greater good for all. CoLinx needs to continue to refrain from selling direct and continue allowing the manufacturers to maintain individual control. Also I think it is imperative that CoLinx continues to distribute benefits accrued in the form of reduce costs. I think the development of CoLinx, LLC. Was an ingenious idea and every