10 Reasons Why Supply Chain Collaboration Fails
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Supply chain collaboration is often viewed, as being incredibly good in terms of ensuring stability, agility and relationship building but it is not a sure fire bet that every collaboration will succeed. Without appropriate planning and analysis from the outset there is a potential for failure.
Considering the many elements that go towards successful supply chain partnerships (from choice of product through to personnel and systems that are used to facilitate the relationship)– effective collaboration can be troublesome to deliver.
Consider some of the following issues:
1. Lack of trust (whether subjective or implied via contract) between participants.
2. Inappropriate technology choice or poor deployment
3. Failure to identify and mitigate key risks.
4. Failure to document and communicate key processes
5. Lack of performance management
6. Lack of buy in from day to day participants
7. Lack of buy in from senior stakeholders
8. Compliance issues.
9. Poor choice of product/collaboration partner – poor quality products/services/quality
In establishing true supplier to buyer collaboration the deployment should be seen as a project – establishing a clear schedule for delivery and ensuring that it is supported by appropriate resources from all participants.
One of the key issues for supply chain execs to get right is that of communication – poor communication can kill any project let alone a procurement project in a large organization.