There has always been and will be conflict in the supply chain, no matter what industry is in question. And this will be true in the future, I believe. 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. This is simply crazy.
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. I am not suggesting that you give away the bank, but rather only put your energies into activities, services, and so forth that delivers the value to your supply partner that they want.
Supply Chain Improvements
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. This also can be done by you. It is possible to develop much closer relationship and communication with a supply chain partner.
It is important to share the same strategy with your partner. The highest priorityis to promptly respond to any complaints and conflicts that arise. It is one of the best ways to improve the trust and build up loyalty betwenn you and your strategic partner.
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