Forging Supply Chain Partnerships

Partnerships should take many forms, from traditionally stmctured buy-sell relationships to outright acquisitions. Thus, many support functions may have to make the partnership work. John Harbison and Peter Pekar point out that many attempted alliances fail for lack of institutionalized procedures that implement the partnerships. These procedures will execute the intent of the partnership. Without it, success is at risk. 

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Forging supply chain partnerships Outside partners are needed to be successful. Old paradigms must be discarded. Implementation requires an organized, multicompany project approach. 

Forging supply chain partnerships Relationships with suppliers and customers are arms length at best, antagonistic at worst. Collaboration up and down the supply chain is limited to transaction data. Efforts are limited to supplier initiatives focused on cost reduction, not revenue increases. Partners collaborate but roles are static. Partners pursue sphere strategies. Trading partners in the supply chain expand their value contributions. 

Task 3 Forging Supply Chain Partnerships (Chapters 17 through 21)... 

Forging supply chain partnerships Working together beats going it alone. The need to partner is real. Chapters 17-21... 

Another prominent example is partnering between manufacturers and third-party logistics providers, or 3PLs. The third-party providers leverage their expertise and infrastructure to fill what have been internal roles in material management. An example is the consolidation center described in a case study in a later chapter. Forging supply chain partnerships, we believe, is indispensable in improving supply chain operations and competitive position. 

Task 3, Forging Supply Chain Partnerships, is the next longest in terms of duration. Phase 2 will probably develop partnership requirements, and Phase 3 will probably implement them. Of course, the nature of the partnership will determine the length of time it takes to implement. Also, there are likely to be multiple partnerships for each sphere. One set might be supplier-related, focusing on incoming material. The other set may look downstream to use partnerships to expand company "space" in the supply chain to better meet the needs of customers. 

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