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Chapter 4
Build The Right Collaborative
Model
Ecclesia Gravy Nacy Gultom 122011800025
Daniel H. Kuncoro 122011800089
Trisakti University – OSCM
Lecturer : Dr Dadang Surjasa Ssi MT
Strategic Supply Chain Management
The 5th Disciplines For Top Performance
What is The Collaboration?
Why Collaboration?
Benefit of Collaboration
Collaboration is a Spectrum
The Path of The Successful Collaboration
Table of Content
11
2
3
4
5
What is The Collaboration?
the means by which companies within the supply chain work together toward mutual
objectives through the sharing of ideas, information, knowledge, risks, and rewards
Accelerate Increase Provide
Successful collaboration requires two additional components:
sharing information and sharing benefits.
What is The Collaboration?
Why Collaboration?
Benefit of Collaboration
Collaboration is a Spectrum
The Path of The Successful Collaboration
11
2
3
4
5
Why Collaboration?
A technology
owned by
another company
A technology that is
too capital-intensive
for one company to invest in
alone
A competency that is
too costly
to acquire, develop, or
maintain
A new market
effectively closed off
by high entry costs or preconditions
(trade barriers, legislation, etc.)
A desire to access :
What is The Collaboration?
Why Collaboration?
Benefit of Collaboration
Collaboration is a Spectrum
The Path of The Successful Collaboration
11
2
3
4
5
Benefit of Collaboration
What is The Collaboration?
Why Collaboration?
Benefit of Collaboration
Collaboration is a Spectrum
The Path of The Successful Collaboration
11
2
3
4
5
COLLABORATION IS A SPECTRUM
Potential collaboration partners in supply chain management can be classified in three
broad groups—customers, materials suppliers, and suppliers of services that support
supply chain operations, such as manufacturing and logistics.
The horizontal axis plots the relative
number of relationship.
The vertical axis measures the relative
depth of collaboration.
Type of Spectrum
Transactional
Cooperative
Coordinated
Synchronized
• Aims for the efficient and effective execution of transactions between partners
• usually applies to customer-supplier relationships in which common or
maintenance, repair, and overhaul (MRO) materials are purchased, and the
decision to deal with a supplier is based mainly on price.
• An example of a transactional relationship is any time a customer and a
supplier agree to a set price for a specific product over a set period of time or
until a certain purchase volume is reached.
Transactional
Transactional Cooperative Coordinated Synchronized
• Cooperative relationships have a higher level of information sharing. Supply c
hain partners may provide automatic commitments and confirmations or shar
e information on forecasts, inventory availability, purchase orders, or order an
d delivery status.
• Cooperative relationships have a higher level of information sharing
→ One -way communication from 1 side to another
→ type and format of data provided usually are standardized
Cooperative
Transactional Cooperative Coordinated Synchronized
• Supply chain partners work more closely together and rely more on each
other’s capabilities
• Requires a two-way flow of information
• requires a high level of negotiation and compromise
Example:
Vendor-managed inventory (VMI) programs
In a VMI relationship, the supplier is responsible for making sure that the
customer never runs out of materials
Coordinated
Transactional Cooperative Coordinated Synchronized
• often called strategic alliances
• information is developed jointly rather than just transmitted or exchanged.
• The sharing of both physical and intellectual assets may even extend to
shared personnel.
• Moreover, tends to focus on a strategic vision of the future rather than on
near-term planning and tactical execution.
Synchronized
Transactional Cooperative Coordinated Synchronized
FINDING THE RIGHT PLACE ON THE SPECTRUM
Areas within the matrix that should be avoided when
choosing a collaboration model
“Low Return.”
• companies collaborate on a limited basis with a set of
supply chain partners. The investment and risk involved in
this model are relatively low—and so is the return.
Not Viable
• the objective is deep collaborative relationships with
many supply chain partners.
• While this level of integration is possible theoretically, it’s
not practical—mainly because aligning a large group of
partners with your business objectives is extremely
difficult
What is The Collaboration?
Why Collaboration?
Benefit of Collaboration
Collaboration is a Spectrum
The Path of The Successful Collaboration
11
2
3
4
5
THE PATH TO SUCCESSFUL COLLABORATION
Master internal collaboration before trying to work with external partners
Define the appropriate degree of collaboration for each partner segment
Be sure that each party has a stake in the outcome of the collaboration. Share benefits,
gains, losses, and risks.
Be prepared to share information you once considered proprietary. Mutual trust is
integral to successful collaboration.
Set clear expectations for each party.
Use technology to support your collaborative relationships.
Master Internal Collaboration First
• Internal collaboration helps to test your company’s “readiness”
• And internal success provides proof positive that the benefits of collaborati
on are real
• A key requirement of effective collaboration is shared metrics
• Internal collaboration actually can be more difficult than external collaborati
on due to a range of complicating factors.
• And reward structures that link individual compensation to business-unit pe
rformance can reinforce business-unit autonomy. These measures can be
counterproductive.
• Internal collaboration is worth the effort. It can confer a competitive edge—
and lay the groundwork for external collaboration. You’ll need to dispel the
perception of internal collaboration as a zero-sum game, where one depart
ment’s gain is another’s loss.
Define the Appropriate Degrees of
Collaboration
• Intensive collaboration is complicated, challenging, and costly, requiring a
major investment in resources, processes, and systems.
• And many potential partners may not be capable or even willing to support
the level of collaboration you want.
• Therefore, it makes sense to segment your partners before embarking on
a collaboration program.
• You have a list of customers, suppliers, or commodities that you consider “
key” or “strategic.
A better approach is to consider several partner-selection criteria weighted according
to your specific needs:
•How essential are the potential partner’s size, business volume, technology, expertise,
materials/ components, or market position?
Strategic
importance
•How compatible are your people and values, and how well will you work together? Are you
equally committed to the relationship, even though business conditions may change? Is there
mutual trust?
Cultural fit
•Can the partner respond quickly and fully to requests for information and materials? Is the partner
flexible enough to adapt to changes in demand or supply? Are the roles and responsibilities in
place for managing a long-term relationship? Can the partner respond quickly and fully to requests
for information and materials?
•Is the partner flexible enough to adapt to changes in demand or supply? Are the roles and
responsibilities in place for managing a long-term relationship?
Organizational
fit.
•Are your systems compatible and easily integrated? Do you have the same degree of technical
sophistication? Are you equally willing to share technologies and innovative solutions? Can your partner
provide accessible, integrated data?
Technology fit
Trust Your Partners, but Protect Your
Interests
• You can’t ask your partners for something without giving them something in return
• There’s a good reason that many companies are skeptical about making highly str
ategic information available to collaboration partners: Trust is violated all the time!
• Your collaborative partnerships typically should include a contract or confidentialit
y agreement that provides a level of legal data protection
• Another concern is transmitting data. The risk of technology failure is very real. m
ore companies are using comprehensive, pricey security services to minimize this
risk.
• To help companies manage information security risk, the International Organizatio
n for Standardization (ISO) created ISO/IEC 17799 → a comprehensive set of con
trols that dictates best practices in 10 critical areas ranging from security policy to
business continuity management. Because the standard is a framework for best p
ractices in information security rather than a methodology, these companies gener
ally use it to frame the specifics of what they require of their partners
Use Technology to Support Your
Collaborative Relationships
• Technology allows you to communicate with your supply chain partners.
• Why have companies been so slow to embrace real collaboration? We think the a
nswer is simple: They’ve not been ready.
• Many companies expected to reap the promised benefits without doing the prelimi
nary legwork—the analysis, process redesign, and alignment with the new applica
tions needed to gain the full functionality.
• Today’s collaboration tools focus on supply chain event management and on relati
onships between customers and suppliers.
• A good collaborative system can gather data and make recommendations based
on a predefined set of business rules, but it can’t gauge the applicability of those r
ules to the current situation or calculate the effect of an inappropriate demand on
a supply chain partner.
• Remember that technology is an enabler, not the driver of success.
Study case
COMMERCIALIZATION PROCESS IN ADIDAS
https://www.youtube.com/watch?v=sleN5xvdhho
DEV-COMM FLOW CHART PROCESS
DEV. STAGE COMMERCE STAGE
CS1
(Sample Size)
CS2
(Extreme Size)
CS3
(Full T Size)
FIRST PRODUC
TION
Presell
SMS
MCS
CR2
(Involve Te
chnical)
Confirm
Pull
Over
Review
Tech
Package
1. Pattern
2. CAD Drawing
3. Material MAP
4. BOM
Commercialization Complete Track Flow Chart
• Commercialization is the means by which a developed prototype is evaluated
for fit, performance and manufacture ability and then graded to all production
sizes ensuring consistency with the develop prototype
• It is also the job commercialization to ensure the factory prepares all necessar
y equipment and that any operator training required especially for the products
is carried out.
Construction of Product:
Well known, conventional construction. (Strobel, Board, Feather)
Existing, simple or no technology.
Factory Relation:
Long term partners with very good brand knowledge.
Fit Critical:
Noncomplex fit construction.
Brand Importance :
Lower brand risk.
Symbol
Definition
Commercialization Track
Not mandatory to understand
● Understand the basic concept
●● Expert in the subject
●●● Advance in the subject
Subject Activity Sub Activity Matrix self Assessmen
t
Lo Comm Lo Production Lo Development Lo Tooling Planning
Other LO Fu
nction
Fty
Comm. Tr
ack
Commercialization Track Identify Test lavel each project ●●● ●●●
Check Test lavel in PDM ● ●●●
Complete Track
(High Risk)
Construction is new and / or difficult, complicated (bounch, seamle
ss)
●●● ● ●● ● ●●●
New or complex technology (injection plates, formation, Mi-coach,
boost, easytone, pump)
●●● ● ●● ●●●
TN product brief types ●●● ● ●●● ● ●●●
New T1 or T2 adidas group partners, no or low brand experience ●●● ●● ●● ● ●●●
Booties, velcro straps, slides, kids ●●● ● ●● ●● ●●●
High brand risk (e.g. from brand range) ●●● ●● ●●● ●● ●●●
Flexible Track
(medium to low risk) Well known, conventional construction (strobel, board, feather) ●●● ● ●● ●● ●●●
Existing, simple or no technology ●●● ● ●● ● ●●●
Long term partners with very good brand knowledge ●●● ● ●● ● ● ●●●
Non complex fit constructions ●●● ● ●● ● ● ●●●
Lower brand risk ●●● ● ●●● ●● ● ●●●
Fast Track ●●● ●● ●●● ● ●● ●●●
CS1 Procedure Overview
Attendees:
Adidas / factory
Commercialization Managers
Adidas / factory Development
Managers
Adidas Production Manager
Relevant Factory Representative
https://www.youtube.com/watch?v=4xufGnB9FXA

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Chapt 4 collaboration

  • 1. Chapter 4 Build The Right Collaborative Model Ecclesia Gravy Nacy Gultom 122011800025 Daniel H. Kuncoro 122011800089 Trisakti University – OSCM Lecturer : Dr Dadang Surjasa Ssi MT Strategic Supply Chain Management The 5th Disciplines For Top Performance
  • 2. What is The Collaboration? Why Collaboration? Benefit of Collaboration Collaboration is a Spectrum The Path of The Successful Collaboration Table of Content 11 2 3 4 5
  • 3. What is The Collaboration? the means by which companies within the supply chain work together toward mutual objectives through the sharing of ideas, information, knowledge, risks, and rewards Accelerate Increase Provide Successful collaboration requires two additional components: sharing information and sharing benefits.
  • 4. What is The Collaboration? Why Collaboration? Benefit of Collaboration Collaboration is a Spectrum The Path of The Successful Collaboration 11 2 3 4 5
  • 5. Why Collaboration? A technology owned by another company A technology that is too capital-intensive for one company to invest in alone A competency that is too costly to acquire, develop, or maintain A new market effectively closed off by high entry costs or preconditions (trade barriers, legislation, etc.) A desire to access :
  • 6. What is The Collaboration? Why Collaboration? Benefit of Collaboration Collaboration is a Spectrum The Path of The Successful Collaboration 11 2 3 4 5
  • 8. What is The Collaboration? Why Collaboration? Benefit of Collaboration Collaboration is a Spectrum The Path of The Successful Collaboration 11 2 3 4 5
  • 9. COLLABORATION IS A SPECTRUM Potential collaboration partners in supply chain management can be classified in three broad groups—customers, materials suppliers, and suppliers of services that support supply chain operations, such as manufacturing and logistics. The horizontal axis plots the relative number of relationship. The vertical axis measures the relative depth of collaboration.
  • 11. • Aims for the efficient and effective execution of transactions between partners • usually applies to customer-supplier relationships in which common or maintenance, repair, and overhaul (MRO) materials are purchased, and the decision to deal with a supplier is based mainly on price. • An example of a transactional relationship is any time a customer and a supplier agree to a set price for a specific product over a set period of time or until a certain purchase volume is reached. Transactional Transactional Cooperative Coordinated Synchronized
  • 12. • Cooperative relationships have a higher level of information sharing. Supply c hain partners may provide automatic commitments and confirmations or shar e information on forecasts, inventory availability, purchase orders, or order an d delivery status. • Cooperative relationships have a higher level of information sharing → One -way communication from 1 side to another → type and format of data provided usually are standardized Cooperative Transactional Cooperative Coordinated Synchronized
  • 13. • Supply chain partners work more closely together and rely more on each other’s capabilities • Requires a two-way flow of information • requires a high level of negotiation and compromise Example: Vendor-managed inventory (VMI) programs In a VMI relationship, the supplier is responsible for making sure that the customer never runs out of materials Coordinated Transactional Cooperative Coordinated Synchronized
  • 14. • often called strategic alliances • information is developed jointly rather than just transmitted or exchanged. • The sharing of both physical and intellectual assets may even extend to shared personnel. • Moreover, tends to focus on a strategic vision of the future rather than on near-term planning and tactical execution. Synchronized Transactional Cooperative Coordinated Synchronized
  • 15. FINDING THE RIGHT PLACE ON THE SPECTRUM Areas within the matrix that should be avoided when choosing a collaboration model “Low Return.” • companies collaborate on a limited basis with a set of supply chain partners. The investment and risk involved in this model are relatively low—and so is the return. Not Viable • the objective is deep collaborative relationships with many supply chain partners. • While this level of integration is possible theoretically, it’s not practical—mainly because aligning a large group of partners with your business objectives is extremely difficult
  • 16. What is The Collaboration? Why Collaboration? Benefit of Collaboration Collaboration is a Spectrum The Path of The Successful Collaboration 11 2 3 4 5
  • 17. THE PATH TO SUCCESSFUL COLLABORATION Master internal collaboration before trying to work with external partners Define the appropriate degree of collaboration for each partner segment Be sure that each party has a stake in the outcome of the collaboration. Share benefits, gains, losses, and risks. Be prepared to share information you once considered proprietary. Mutual trust is integral to successful collaboration. Set clear expectations for each party. Use technology to support your collaborative relationships.
  • 18. Master Internal Collaboration First • Internal collaboration helps to test your company’s “readiness” • And internal success provides proof positive that the benefits of collaborati on are real • A key requirement of effective collaboration is shared metrics • Internal collaboration actually can be more difficult than external collaborati on due to a range of complicating factors. • And reward structures that link individual compensation to business-unit pe rformance can reinforce business-unit autonomy. These measures can be counterproductive. • Internal collaboration is worth the effort. It can confer a competitive edge— and lay the groundwork for external collaboration. You’ll need to dispel the perception of internal collaboration as a zero-sum game, where one depart ment’s gain is another’s loss.
  • 19. Define the Appropriate Degrees of Collaboration • Intensive collaboration is complicated, challenging, and costly, requiring a major investment in resources, processes, and systems. • And many potential partners may not be capable or even willing to support the level of collaboration you want. • Therefore, it makes sense to segment your partners before embarking on a collaboration program. • You have a list of customers, suppliers, or commodities that you consider “ key” or “strategic.
  • 20. A better approach is to consider several partner-selection criteria weighted according to your specific needs: •How essential are the potential partner’s size, business volume, technology, expertise, materials/ components, or market position? Strategic importance •How compatible are your people and values, and how well will you work together? Are you equally committed to the relationship, even though business conditions may change? Is there mutual trust? Cultural fit •Can the partner respond quickly and fully to requests for information and materials? Is the partner flexible enough to adapt to changes in demand or supply? Are the roles and responsibilities in place for managing a long-term relationship? Can the partner respond quickly and fully to requests for information and materials? •Is the partner flexible enough to adapt to changes in demand or supply? Are the roles and responsibilities in place for managing a long-term relationship? Organizational fit. •Are your systems compatible and easily integrated? Do you have the same degree of technical sophistication? Are you equally willing to share technologies and innovative solutions? Can your partner provide accessible, integrated data? Technology fit
  • 21. Trust Your Partners, but Protect Your Interests • You can’t ask your partners for something without giving them something in return • There’s a good reason that many companies are skeptical about making highly str ategic information available to collaboration partners: Trust is violated all the time! • Your collaborative partnerships typically should include a contract or confidentialit y agreement that provides a level of legal data protection • Another concern is transmitting data. The risk of technology failure is very real. m ore companies are using comprehensive, pricey security services to minimize this risk. • To help companies manage information security risk, the International Organizatio n for Standardization (ISO) created ISO/IEC 17799 → a comprehensive set of con trols that dictates best practices in 10 critical areas ranging from security policy to business continuity management. Because the standard is a framework for best p ractices in information security rather than a methodology, these companies gener ally use it to frame the specifics of what they require of their partners
  • 22. Use Technology to Support Your Collaborative Relationships • Technology allows you to communicate with your supply chain partners. • Why have companies been so slow to embrace real collaboration? We think the a nswer is simple: They’ve not been ready. • Many companies expected to reap the promised benefits without doing the prelimi nary legwork—the analysis, process redesign, and alignment with the new applica tions needed to gain the full functionality. • Today’s collaboration tools focus on supply chain event management and on relati onships between customers and suppliers. • A good collaborative system can gather data and make recommendations based on a predefined set of business rules, but it can’t gauge the applicability of those r ules to the current situation or calculate the effect of an inappropriate demand on a supply chain partner. • Remember that technology is an enabler, not the driver of success.
  • 23. Study case COMMERCIALIZATION PROCESS IN ADIDAS https://www.youtube.com/watch?v=sleN5xvdhho
  • 24. DEV-COMM FLOW CHART PROCESS DEV. STAGE COMMERCE STAGE CS1 (Sample Size) CS2 (Extreme Size) CS3 (Full T Size) FIRST PRODUC TION Presell SMS MCS CR2 (Involve Te chnical) Confirm Pull Over Review Tech Package 1. Pattern 2. CAD Drawing 3. Material MAP 4. BOM
  • 26. • Commercialization is the means by which a developed prototype is evaluated for fit, performance and manufacture ability and then graded to all production sizes ensuring consistency with the develop prototype • It is also the job commercialization to ensure the factory prepares all necessar y equipment and that any operator training required especially for the products is carried out. Construction of Product: Well known, conventional construction. (Strobel, Board, Feather) Existing, simple or no technology. Factory Relation: Long term partners with very good brand knowledge. Fit Critical: Noncomplex fit construction. Brand Importance : Lower brand risk.
  • 27. Symbol Definition Commercialization Track Not mandatory to understand ● Understand the basic concept ●● Expert in the subject ●●● Advance in the subject Subject Activity Sub Activity Matrix self Assessmen t Lo Comm Lo Production Lo Development Lo Tooling Planning Other LO Fu nction Fty Comm. Tr ack Commercialization Track Identify Test lavel each project ●●● ●●● Check Test lavel in PDM ● ●●● Complete Track (High Risk) Construction is new and / or difficult, complicated (bounch, seamle ss) ●●● ● ●● ● ●●● New or complex technology (injection plates, formation, Mi-coach, boost, easytone, pump) ●●● ● ●● ●●● TN product brief types ●●● ● ●●● ● ●●● New T1 or T2 adidas group partners, no or low brand experience ●●● ●● ●● ● ●●● Booties, velcro straps, slides, kids ●●● ● ●● ●● ●●● High brand risk (e.g. from brand range) ●●● ●● ●●● ●● ●●● Flexible Track (medium to low risk) Well known, conventional construction (strobel, board, feather) ●●● ● ●● ●● ●●● Existing, simple or no technology ●●● ● ●● ● ●●● Long term partners with very good brand knowledge ●●● ● ●● ● ● ●●● Non complex fit constructions ●●● ● ●● ● ● ●●● Lower brand risk ●●● ● ●●● ●● ● ●●● Fast Track ●●● ●● ●●● ● ●● ●●●
  • 28.
  • 29.
  • 30. CS1 Procedure Overview Attendees: Adidas / factory Commercialization Managers Adidas / factory Development Managers Adidas Production Manager Relevant Factory Representative
  • 31.