SCM 460 GLOBAL SUPPLY CHAIN STRATEGY
Dr. Alex Rodrigues
Relationship Management

Topics

Topic 1:
• Understand what kind of collaboration is appropriate for your firm’s strategy
Topic 2:
•

Understand the drivers, facilitators, impediments and benefits of SC collaboration

Reading 1: We’re In This Together
• Many SC partnerships fail to live up to expectations
– Make sure the partnership is justified
– Example: Wendy’s only partners when both “volume of buy” and
“complexity to Wendy’s” is high
• Drivers
– Asset & Cost Efficiencies
– Customer Service Enhancements
– Marketing Advantages
– Profit Growth or Stability
• Facilitators
– Compatibility of: Corporate Cultures; Mgmt philolosophies/techniques; – Strong Sense of Mutuality
– Symmetry between the 2 parties

Reading 1: We’re In This Together

Reading 1: We’re In This Together

Reading 1: We’re In This Together

Reading 2: Collaboration: Enablers,
Impediments, Benefits

• Collaboration: all supply chain companies are actively working together as one toward common objectives, sharing information, knowledge, risk & profits
• Collaboration can be successful
– Requires right enablers to be in place
– Requires barriers to be overcome

• Collaboration is characterized by sharing – the sharing of information, knowledge, risks, and profits

Reading 2: Collaboration:
Enablers, Impediments, Benefits
Enablers
• Common Interest
• Openness
• Recognizing who/what important • Mutual help
• Clear expectations
• Leadership
• Working together &
Adjusting to one another
• Cooperation, not punishment • Trust
• Benefit sharing
• Technology

Barriers
• Doing things the old way • Conventional accounting practices
• Tax laws
• Limited view of SC
• Annual negotiation process • Time investment
• Inadequate communication • Inconsistency
• betrayal

Benefits
• Reduced inventory
• Increased customer service
• Increased efficiency of human resources • Reduced cycle times
• Increase speed to market of new products • Increased focus on core competencies • Increase public image
• Increased trust and interdependence • Increased sharing of info, ideas, technology • Increased emphasis on SC whole
• Increased shareholder value
• Competitive advantage

Reading 3: Which Kind of
Collaboration is Right for You?
• Article does not have a specific SC focus – think about how these ideas can be applied in a SC setting
• Before jumping in to collaborative relationships, consider your firm’s collaborative architecture
– Structure
– Organizing principles

• Two Basic Questions to Ask:
– Given your strategy, how open or closed should your firm’s network of collaborators be?
– Who should decide which problems the network will tackle and which solutions will be adopted?

Reading 3: Which Kind of
Collaboration is Right for You?

Reading 3: Which Kind of
Collaboration is Right for You?

Reading 3: Which Kind of