Chapter 3 and 5 scm - Chapter 3 Strong supplier...

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Chapter 3 Strong supplier partnerships Important to achieving win-win competitive performance for the B/S Require a strategic perspective rather than a tactical position Involve a mutual commitment over an extended period of time to work together for the mutual benefit of both parties, sharing relevant information and the risks and rewards of the relationship Four ways to ensure tasks are completed Internal activities o Activities that are core strengths may be the best way to perform the activity Acquisitions o Gives the acquiring form full control over the way the particular business function is performed o Can be difficult and expensive Arm’s-length transactions o Most business transactions are like this o Short-term arrangement that fulfills a particular business need but doesn’t lead to long term strategic advantages Strategic alliances o Multifaceted, goal-oriented, long term partnerships o Risks and rewards shared o Long term strategic benefits for both Keys to successful partnerships 1. Building trust a. Enables sharing of valuable info b. Make compromises 2. Personal relationships a. It’s the people who get things done 3. a. Formal and informal lines should be set up to let free flow of info b. sensitive info must be protected regardless 4. a. B/S share expectations, reasons, and mutually agreeable objectives of the partnership b. Move beyond tactical to strategic paths 5. a. Both parties must have compatible needs b. Create environment for innovation 6. a. Top execs must support partnership 7. Change Management a. Avoid distractions from their core competencies 8. Capabilities a. suppliers must be able to meet cost, quality, and delivery requirements in a timely manner 9. Performance Metrics a. Measures related to quality, cost, delivery, flexibility
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b. Metrics should be understandable, easy to measure, and focus on real value-added
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This note was uploaded on 03/25/2011 for the course SUPPLY CHA 799:301 taught by Professor Salama during the Spring '11 term at Rutgers.

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Chapter 3 and 5 scm - Chapter 3 Strong supplier...

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