Presentation from Elemica's Reveal2014 Conference

1. Supply Chain Relationships
- The Art of Collaboration
reveal2014 Conference
Philadelphia; 6-7 May
Art van Bodegraven

2. Backdrop
• Suppliers. Customers. Can’t live with‘em;
can’t live without‘em.
• Consultants. 3PL service providers. Can
these menages a trois last?
• What are relationships? Why are they
important?
• Are business relationships different from
simply“relationships?” How?
• What keeps relationships going after the
first blush of infatuation has faded?
Copyright 2014
Art van Bodegraven
More than data sharing;
more than wooing customers

3. Words of wisdom
“The hardest thing in life is to learn which bridge to cross and which to
burn.”
Laurence J. Peter
“Assumptions are the termites of relationships.”
Herman Hesse
“The bird of paradise alights only on the hand that does not grasp.”
John Berry
“Acquaintance, n: a person whom you know well enough to borrow from,
but not well enough to lend to.”
Ambrose Bierce
“The important thing is not what to put in, but what to leave out.”
Andrew Wyeth
Copyright 2014
Art van Bodegraven

4. Words of wisdom - II
“We are in the new Age of Collaboration!”
Ann Drake, CEO, DSC
“We are reserving capacity for customers who treated us right.”
Derek Leathers, COO, Werner Transportation
“It’s not enough to be busy. So are the ants. The question is: What are we
busy about?
Henry David Thoreau, American Philosopher and Author
“Innovation distinguishes between a leader and a follower . . .Be a yardstick
of quality. Some people aren’t used to . . . excellence . . .”
Steve Jobs, Disruptive American Technology Game-Changer
“To the blind, all things are sudden.”
Russian Proverb
Copyright 2014
Art van Bodegraven

5. A bird’s-eye view
• France’s Estates General
– First – The Clergy
– Second – The Nobility
– Third – The Commoners
• English Parliament
– Lords Temporal
– Lords Spiritual
– Commons
• Fourth – the Press
• Fifth - Anarchists
• The World of SCM
– First – Academia (Clergy)
– Second –
Consultants/Software
Developers (Nobility)
– Third – Practitioners
(Commons)
– Fourth – Trade Press (?)
– Fifth – Inherent in
Committees
Keeping balance :
CSCMP, WERC,
personal networks
Copyright 2014
Art van Bodegraven

6. Within the supply chain
• Network of relationships
– Company/customers
– Suppliers/company
– Company/competitors
– Practitioners/consultants-
academics-software providers
– Company/3PLs
– Academics/service
providers/consultants
– Inter-company
• Too complicated?
• But supply chains do compete
against other supply chains
Copyright 2014
Art van Bodegraven

7. Why Collaborate?
• The New Game of Business
• The World is Flat; Emotional
Intelligence
• Shifting Supply Chains
• Global Carnivores
• The Bottom Line
• Sustainability/Longevity
Copyright 2014
Art van Bodegraven

8. Partnership vs. collaboration
• The“partnership”misnomer
– How many?
– Where?
– Limitations of position/place in
the supply chain
• Attributes
– High-trust
– High-communication
– Shared-values
– Open-books
– Mutual-benefit
Copyright 2014
Art van Bodegraven

9. Elements Of Collaboration
• Connection First; Task Second
• Walk In Their Shoes
• Trust: Up To You
• Share Information=Power
• Manage Yourself
Copyright 2014
Art van Bodegraven
Authenticity
Consistency
Compatibility

10. The Trust Component In Collaboration
• Dimensions of Trust
– Sincerity
– Reliability
– Competence
• Evaluations of Trustworthiness
– Missouri
– New York/New Jersey
– California
Copyright 2014
Art van Bodegraven

11. Sorting It All Out
• Outbound
– Volume
– Profitability
– Customer Base
– Trends/Long-Term Position
– Power Relationship
• Inbound
– Mission Criticality
– Complexity
– Stability/Financial Health
– Capacity
– Choke Points/Risks
Copyright 2014
Art van Bodegraven

12. Examples - suppliers
• Communicating:
– Demand events
– Strategic direction
• Technology
– Linked information systems
– Joint exploitation – internet, EDI, etc.
– Team efforts – cost reduction/quality
improvement
• Context
– Understand capabilities/capacities
– Sharing/teaching 21st-century
techniques
– Joint product/process development
– Multi-level market/customer
intimacy
Copyright 2014
Art van Bodegraven

13. Examples - customers
• Same issues as for suppliers, but
in reverse
• You take the initiative
– Discover strategy & direction
– Tease out event plans
– Promote value of
flexibility/resilience
– IS/IT opportunities
• Know their business/customers
– Develop products, services,
processes to help them succeed
• For both, cultural underpinning
of talent, attitude
You can fake sincerity for only so
long . . .
Copyright 2014
Art van Bodegraven

14. LSPs & consultants
• Communications, communications,
communications
• Multi-level working relationships
• Events, strategies, directions,
products, customers – open
information
• Value-adding vs. commoditized
transactions
• Leverage capability through open
knowledge
• Software providers, too?
Copyright 2014
Art van Bodegraven

15. Inside The Company
• Get your own house in order, first
• Communications/synchronization in all operations
• Inclusion of Sales/Marketing, Sourcing/Procurement,
R&D/Product Development
• Senior Management inclusion/C-level communication
• Joint problem-solving/planning
• Cross-functional teams (with a purpose)
• DNA-resident
• Are you ready for prime time?
Copyright 2014
Art van Bodegraven

16. Bottom line
• Relationships
– Good ones are pearls without
price
– Bad ones can sink the ship
• Relationships
– Hard work
– Consistency
– Payoffs
• Arm’s length vs. collaborative
– Lower price/higher cost?
– Longevity
• How much tougher would it
be without strong
relationships?
Copyright 2014
Art van Bodegraven

17. Collaboration & Relationship Management
• Partnerships/Relationships
• Customers
• Suppliers
• 3PL/4PL’s
• Others
• Segment/Stratify
• Rationalize
• Fit
• Potential
• Vision
• Differentiated Strategies
• Focus on:
• Future
• Execution
• Consistency
• Relationship management
isn’t about:
• Golf
• Drinks
• Win-lose solutions
• Who’s the boss
• Bow ties
• Re-visit regularly
• Don’t be afraid to change
direction
• Going from win-lose to
win-win to win-win-win
Copyright 2014
Art van Bodegraven

18. Business relationship keys to success
• Values/chemistry
compatibility; shared vision
• Constant attention/feedback
• Belief at all levels
• Kaizen in all dimensions
• No assumptions
• Nothing for granted
• Accountability/responsibility
• Acknowledge
fragility/vulnerability
• Investment vs. cost
A $20 million relationship is a $.5
billion relationship over 25 years
Copyright 2014
Art van Bodegraven

19. Questions?
Copyright 2014
Art van Bodegraven
• Art van Bodegraven
(614) 893-9414
avan@columbus.rr.com
www.artvanbodegraven.com
www.DiscoveryES.com
www.dcvelocity.com/blogs (The Art of Art)
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