There will always be some conflicts in the supply chain, without regards to the industry. That, I believe, will continue to be true. More times than I can remember, I have presented my keynote presentation titled, The New Era of Manufacturer/Distributor Cooperation at either manufacturing or distribution association meetings.
In doing my research for these presentations, the supply chain partners usually claim that they communicate well with each other. Unfortunately, that rarely proves to be the case. Through collaborative relationships, supply chain partners can improve.
To build efficient and productive relationship with any supply chain partner, important thing that will definitely help to improve the level of communication is an ability to understand a value that your supply chain partner has to receive from that relationship. As an example, your procurement department might believe that your supply partner should cut their price so low that they no longer make a profit. And that is just ridiculous.
Your partner will see you as a great resources and a partner of trust and value if you make an effort to understand what kind of value your partner needs and help him to receive that value, which will improve the communication. Don’t give away the bank here, but to deliver the value your supply parnet needs, you should put your energies into the services and activities and other similar tasks.
Improvements of the Supply Chain
Just-in-time inventory purchasing and supplying as exemplified by the famous relationship between Wal-Mart and Procter & Gamble has continued to prove successful. Another example are Dell Computers and Home Depot that have built a strong strategic alliance with the justi-in-time inventory that is so much cost saving. You could also apply this in your business. You can develop closer relationships with your supply chain partners.
To share the same strategy as your partner is a must in the business. It is neccesary to respond to conflicts an complaints promptly. This is the bet way to earn loyalty and build trust in the strategy which will bring great results.
