Supply Chain Success With Strategic Alliances
October 29th, 2008 at 09:29pm Under General
No matter the industry, there has always been conflict in the supply chain. That, I believe, will continue to be true. More times than I can remember, I have presented my keynote presentation titled, The New Era of Manufacturer/Distributor Cooperation at either manufacturing or distribution association meetings.
While doing some research concerning this issue, the partners are satysfied with the level of good communication between them. But, that is rarely the case. With communication and collaborative relationship, all partners will definitely improve.
To build efficient and productive relationship with any supply chain partner, important thing that will definitely help to improve the level of communication is an ability to understand a value that your supply chain partner has to receive from that relationship. One good example of this is that a procurement department can be in position to believe that a supply partner could lower the price in such way that they can not make any profit. This is simply crazy.
Your partner will see you as a great resources and a partner of trust and value if you make an effort to understand what kind of value your partner needs and help him to receive that value, which will improve the communication. It is best to put the energies you have at disposal into activities, services and similar tasks that will provide the value your strategic partner needs, but you should not give away the bank.
Supply Chain Improvements
Just-in-time inventory purchasing and supplying as exemplified by the famous relationship between Wal-Mart and Procter & Gamble has continued to prove successful. Another example are Dell Computers and Home Depot that have built a strong strategic alliance with the justi-in-time inventory that is so much cost saving. You could also apply this in your business. You can develop closer relationships with your supply chain partners.
You and your partner should share the same strategy, and that is a very important issue. The highest priorityis to promptly respond to any complaints and conflicts that arise. This is the bet way to earn loyalty and build trust in the strategy which will bring great results.
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