effective supply chain management has collaboration as a cornerstone


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focus on collaboration within the supply chain, and elements that could limit or be advantageous

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effective supply chain management has collaboration as a cornerstone

  1. 1. Ef fective supply chainmanagement has collaboration as a cornerstone Matthew Balie - 2840805
  2. 2. What is SCM?“a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores...so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time...in order to minimize system wide cost while satisfying service level requirements”This definition makes it clear that relationships develop within the supply chain, THUS, there is a need for COLLABORATION
  3. 3. What is supply chaincollaborationCo-operative arrangement in which two or more parties work jointly towards a common goal.Collaboration allows development of synergy between partners and encourages joint planning and info exchangeCommitment is required by both partners
  4. 4. Benefits of collaborationImproved FORECASTING of manufacturingImproved service level of DELIVERY by reduced cycle timesQuick resolution of problems, because of COMMUNICATIONLOWER TOTAL COSTS through reduced inventory and quality checksIncrease SPEED INTO MARKET of new products and servicesMAIN GOAL to improve ROI, increase shareholder value, and create a sustainable comp adv over other SC’s
  5. 5. Enabling CollaborationCommon interestMutual helpOpennessClear expectationsTrustBenefit sharingTechnology
  6. 6. Trust
  7. 7. TrustWith trust comes confidence in collaborator that the other party will do exactly what they say they are going toViewed as investment and sign of confidence through the openness shown between buyers and sellersA sign of trust in business partners is the ability to share vital information such as, costs, forecast, and strategic plans
  8. 8. Limitations of collaborationSourcing technology that can adapt to the changing relationship (common platform)Lack of trust among partners to share vital infoIneffective communication (lead to poor planning and ineffective replenishment)Willingness of employees to accept changeBetrayal of partners (lying and misleading)
  9. 9. Conclusion:COLLABORATION IS NEEDED for supply chain to remain effectiveCollaboration can lead to innovation, THUS CREATING A COMPETITIVE ADVANTAGEAdditional knowledge and skills of suppliers allow firms to BUILD AND FOCUS ON CORE COMPETENCIES