Supply Chain Management |
Building High Performance Business Relationships |
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Successful supply chain management requires cross-functional integration of key business processes within the firm and across the network of firms that comprise the supply chain. It is focused on the management of key relationships and the improvements in performance that can be achieved. However, in many companies executives struggle to achieve the necessary integration. The problem is that they do not fully understand the supply chain management processes and the linkages necessary to integrate those processes. By understanding them and recognizing why and how they should be implemented, executives will be able to create more integrated supply chains which will lead to increased revenues and profitability for all member firms. |
A firm cannot and should not partner with every supplier, customer or third-party provider. It is important to ensure that scarce resources are dedicated only to those relationships which will truly benefit from a partnership. Yet, many organizations become involved in relationships that do not meet management expectations and/or which end in failure. How can managers determine, in advance, if a potential relationship is one which will result in competitive advantage, and is worthy of the time and resources needed to fully develop into a partnership? Further, all partnerships are not the same. How does management know what type of partnership would provide the best pay-off? These questions may be answered by utilizing the Partnership Model presented in this book. |
What is Supply Chain Management?
“Much has been written about supply chain management but there is very little practical direction on how to implement or achieve the benefits that have been envisioned. This framework provides a practical way to achieve the promises of supply chain management within and between organizations.”
— Ernie Elliot
Rear Admiral Retired, Supply Corps, USN, Vice President, Supply Chain for xpedx, an International Paper company
The partnership model
“Through this partnership model, we were able to turn around a relationship that had gotten so bad we had gone several years without doing business and a few involved vowing never to do business again. We were able to learn what our customer really wanted and what they needed. We were able to share our wants and needs as a supplier. We learned that we were really not that far apart. This process manages through individual personalities and allows the business factors to win out. Today, we hold the relationship with this customer as one of our very best. We can be very frank and honest with each other today. We know there are no ulterior motives and we are able to make decisions that work not just for the short term.”
— Bernard F. Leonard
Group Vice President, Food Service, Tyson Foods