Mar
7
5 Steps To Succeeding With Supply Chain Collaboration
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Before we look at how to succeed with supply chain collaboration, it is important to look at what supply chain collaboration is and how it operates. Supply chain collaboration is actually when two different elements within the supply chain communicate and work together. So if you have company A and company B involved and company A stocks some of company B’s products then A and B will work together to ensure that the company B products do not run out in company A retail centers. This means that the two companies have to work closely together, but on the other hand, the mutually beneficial relationship means that they can benefit from having a collaborative approach. So how do they succeed?
1. The first element involved in supply chain collaboration is actually a need to acknowledge that mutual collaboration will lead to mutual benefits for all those involved in the supply chain. If parties do not have a belief that it is a beneficial process they are less likely to take part.
2. Collaboration requires a certain level of openness which requires trust. There are lots of other tools and techniques that can aide collaboration, but if there is an absence of trust then opportunities will be hampered.
3. Thirdly there is a need to adopt a strategic approach to the whole process of supply chain collaboration. This is in a sense, the umbrella for how the companies will operate together. If there is no strategy then there is no way that people will know what they are supposed to do or what is being expected of them. The strategy should also include some key performance indicators so that there are some tools to measure success and see how performance is doing.
4. The fourth critical element when it comes to supply chain collaboration is communication. This is necessary to ensure that everyone is clear about what is happening, when it is happening, who is doing what and so on. Communication involved sharing all kinds of information and is absolutely vital if collaboration is to be successful.
5. Technology can be a key facilitator but use the right tools for the right jobs!. Flexible standards based software can be deployed to simplify transactional functions while web based project management tools can bring virtual teams closer together.
There are many other elements that are required for supply chain collaboration but the 5 steps above provide the fundamentals that will ensure collaboration can happen and that people will feel comfortable with the process of collaborating. Supply chain collaboration is extremely beneficial when done properly; the trick is to ensure that it is done correctly and that everyone knows what is happening and what is expected of them!