There are three levels that precede collaboration: arm-length relationships, cooperation, and coordination. Collaboration requires the highest level of commitment and information sharing between parties. Effective collaboration involves elements like trust, commitment, balancing power dynamics, and shared decision-making. It can take various forms from traditional logistics management between channel partners to strategic alliances across industries. Building collaboration is challenging and requires relationship skills like planning, defining mutual benefits, reliability, listening, and influencing.
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Coordination, Cooperation & Collaboration In The Supply
3. DEFINING LEVELS OF RELATIONSHIP
 Arm-Length Less Investment, Least,
Information Sharing, Limited Interaction
 Cooperation Managing Increasingly
Complicated Flow of Information
 Coordination Information System Strongly
Linked & More Emphasis on Strategy
 Collaboration Committed Relationship
Without Involving Equity
4. TYPES OF COLLABORATION
Type-1
 Involves Traditional
Logistics Management
 Channel Partners
Connected by IT
 Skill Substitution
Type-2
 Non-Logistics Activities &
Functions
 Strategic Alliances Across
Industries & SC
 Organizational Learning
5. ELEMENTS OF COLLABORATION
HOW COMPANIES INTERACT MEANS COMPANIES INTERACT
 Trust
 Commitment
 Balance of Power & Cultural
Differences
 Information Systems
 Collaborative Controlling
Systems
 Reward & Risk Sharing
 Joint Decision Making
 Conflict Management
6. ACHIEVING 3C’S IN CHANNEL PARTNERS
 Establishing Trust
 Developing Mutual Objectives
 Developing True Commitment to End Goal
7. CON-AGRA FOODS (INDIAN ARM)
A Case Study
i2 Supply Chain Strategist
East West North South
A---------B-----------C
(Categories of Towns)
CFA Warehouses
(In all 5 regions)
NCR
3P
Manufacturing
Units
Distribution Points 1500+
R-1 R-6R-5R-4R-3R-2
SKU’s (175 Total)Logistics
Supply Chain Collaboration Con-Agra Foods Inc. - INDIA
Demand
Planning
Supply
Planning
150000 +(Hundred Fifty Thousand +) retail Outlets
8. CHALLENGES IN COLLABORATION (DOWNSTREAM)
 Doing Things Primitive Way
 Conventional Accounting Practices
 Tax Laws
 Antitrust Laws
 Limited View of Supply Chain
9. CHALLENGES IN COLLABORATION (DOWNSTREAM)
 Annual Negotiation Process
 Time
 Bad Communications
 Inconsistency
 Betrayal
10. RELATIONSHIP SKILLS OF A SUPPLY CHAIN MANAGER
 Ability to Plan for Unexpected
 Acclimatizing Mindset
 Ability to Define Benefits of Collaboration
 Reliability & Approachability
 Psychology Tracking Skills
 Listening Skills
 Influencing Skills
11. CONCLUSION
The move from domestic to global supply chain
management requires a new way of dealing with
supply channel partners. Global outsourcing
practices demand that management learn how to
build relationships that allow all channel members
to prosper. Individual managers must learn to
develop their relationship building skills in order to
take full advantage of the coordination,
cooperation and collaboration opportunities
available to their companies.