Supplier Partnership 20 Help to build trust Sharing information as much and early as possible to support joint decision making Transparent Transparent All parties work for mutual benefits rather than trying to take advantage on the expense of others Trust-based Trust-based Seeing the supply chain as a whole … delivering customer value by working together Collaborative Collaborative
Supplier Partnership 21 Reducing suppliers base for key inputs A small number of partners A small number of partners Likewise benefits, problems should be mutually solved Sharing of learning and experience Joint problem solving and learning Joint problem solving and learning Sharing gains wherever who make it … facilitates the effective assignment of resources to wherever who needs Gain sharing Gain sharing
Supply Chain Management 22 • Supply Chain Management is ... the design and management of processes across organizational boundaries with the goal of matching supply and demand in the most cost effective way. • Difficulty in matching supply and demand … • Uncertainty in demand and/or supply • Changing customer requirements • Decreasing product life cycles • Conflicting objectives in the supply chain partners • Conflicting objectives even within a single firm
Companies seek to design business models that meet customer needs better than competitors. Success depends on the ability to … Design , Make , and Deliver innovative , high quality , low cost products and services that customers demand. Theory of Supply chain Management 23
The core of Supply Chain Management is to focus on unique skill sets …and outsource other things that you don’t have a world class status. Theory of Supply chain Management 24 Organizational strengths or abilities, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy. Core Competencies Core Competencies Note : the ability of a firm to manage its supply chain partners may in itself be considered a core competency (e.g. Dell Computers).
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