focus on collaboration within the supply chain, and elements that could limit or be advantageous

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
more parties work jointly towards a common goal.
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 SC’s

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