Abstract
M.Ing.
PURPOSE
A case study at Sasol Limited, a South African based petrochemical
corporation was conducted in order to provide additional insights into
relationship development between a consumer and suppliers in the process
automation system industry. The purpose of this mini-dissertation is to
describe how a South African Petrochemical Corporation, Sasol Limited
developed an alliance with a number of its Process Automation System
suppliers.
2 RESEARCH METHODOLOGY & APPROACH
In this dissertation, the Petrochemical Corporation’s role in the alliance
formation is analysed. Current theory on alliance formation processes was
reviewed in order to attain a concise understanding on partnering and alliance
formation theory. From the literature review a partnering model is established
and compared it to Sasol Limited actual process.
3 FINDINGS, LIMITATIONS & CONCLUSION
The case study indicates that the alliance formation process is not a “one size
fit all” process but rather a process that needs to be tailored according to the
situation. A requirement for successful alliance is that it should benefit all
parties involved.
Although the dissertation’s main perspective is the buyer’s side of the alliance,
Sasol Limited, the processes taken by the Process Automation System
Vendors has also been considered.
The research suggests that organisations involved in situations where a
number of suppliers that provide the same products or service should
consider fostering one or more special relationships that are mutually
beneficial.
Buyer-Supplier alliances are not limited to one supplier. A single buyer may
have alliances with multiple suppliers where advantageous.
The main advantage to the buyer is an increase in competition by suppliers as
well as cost savings that are induced as a result of favourable rates brought
by the alliance.
The main advantage to the seller is that a guaranteed source of revenue can
then be established.