A strategic alliance that involves the development of preferred supplier relationships to guarantee a smooth and timely flow of quality materials among partners is known as an outsourcing alliance.

Outsourcing Alliance

A partnership where a company contracts out certain services or processes to another company, aiming to leverage specialized skills or cost advantages.

Preferred Supplier

A business that has been given a status that prioritizes its goods or services over others due to its quality, reliability, or cost-effectiveness.

Strategic Alliance

An alliance between two or more firms aiming to achieve common goals, with each maintaining their separate entity status.