Multicompany collaboration

Since then, the authors note, the scope of SCM has expanded beyond uniting departments in a single company to multicompany collaboration. However, they note that the underlying principles remain the same ... 

CPFR is a good example of an industry s response to the need for supply chain change. But what general form might collaboration take between two or more trading partners An earlier article outlined a vision for Stage 3 supply chain collaboration efforts. " The term Stage 3 comes from the third, or supply chain, level as shown in Table 3-3. Multicompany collaboration features include ... 

This chapter reaches outside to relationships between companies along the chain, or multicompany collaboration to achieve strategic objectives. We describe the building blocks for partnerships in this and Chapters 18 through 21. 

Table 27.6 compares ABC with abc. The abc version is the philosophy we recommend for supply chain management — at least in the initial stages of multicompany collaboration. Not every company is ready to invest in developing and maintaining what could be expensive and intrusive hnancial systems. To explain abc by example, we call again upon our three companies, Process, Old Line, and High Tech. The companies... 

The Center of Interfacial Engineering at the University of Minnesota is an example of the multicompany-single university collaboration model. Perhaps the Massachusetts Institute of Technology (MIT) media... 

A multicompany CEO or senior management steering committee. This group would be responsible for the results of the collaboration. 

As the Motorola case illustrates, mounting a multicompany effort with customers like Nextel is unlikely unless one s own processes and responsibilities are coherent. Effective supply chain management requires collaborative relationships throughout the organization, not competitive ones between profit centers like those that Zander found at Motorola. 

The presence of multicompany threads in the supply chain evokes the need for collaboration to set them up. This setup process is what SCOR... 

The vertical axis in Figure 27.1 reflects different levels of information capture along the supply chain. Single company data (Level I) expands to take into account the cost of capital (Level II). This includes the fixed assets and working capital required by the company to operate. At Level III, companies share cost data to gain a multicompany view. At Level IV, the final stage, cost drivers are applied to activity-based costs to develop supply chain product costs. These costs support collaborative strategic product line decisions at a multicompany level. 

---