effective supply chain management has collaboration as a cornerstone
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Effective supply chain management relies on collaboration between suppliers, manufacturers, warehouses, and stores. Collaboration allows for joint planning, information sharing, and developing synergy between partners to integrate the supply chain. The benefits of collaboration include improved forecasting, delivery, communication, costs, and speed to market. Enabling collaboration requires common interests, mutual help, openness, trust, clear expectations, benefit sharing, and technology.
effective supply chain management has collaboration as a cornerstone
- 1. Ef fective supply chain management has collaboration as a cornerstone Matthew Balie - 2840805
- 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. What is supply chain collaboration Co-operative arrangement in which two or morepartiesworkjointly towards acommongoal. Collaboration allows development of synergy between partners and encourages joint planning and info exchange Commitment is required by both partners
- 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 SCs
- 5. Enabling Collaboration Common interest Mutual help Openness Clear expectations Trust Benefit sharing Technology
- 6. Trust
- 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. 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. 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