Supply chain partnership is a relationship formed between two independent entities in supply channels to achive specific objectives and benefits and it is these partnership that form the essential building blocks of supply chain management.
Benefits partnership.
- Improve quality.
- New technology.
- Better product design.
- Reduce risk.
- Improve customer service.
- Compititive advantages.
- Improve communication.
- Lower invesment.
- Easy to manage.
Risk.
- Reputation company.
- Limited choice,reduce variety of choice.
- Lack coorperation.
- Miss communication.
- Partner will be our own compititer.
DISCRETE VERSUS RELATIONAL BUSINESS STRATEGIES.
Discrete Orientation.
- Duration : One time.
- Transferability : Completely transferable.
- Switching parties attitude : Independent,suspicious.
- Communication : Very little.
- Information : Proprietary.
- Planning and goals : Individual,short term.
- Benefits and risk : Individual.
- Problem solving : Power driven.
Relation Orientation.
- Duration : Long term.
- Transferability : Extremly difficult to transfer.
- Switching parties attitude : Open,trusting,coorperative
- Communication : Complex.
- Information : Shared.
- Planning and goals : Joint, long term.
- Benefits and risk : Shared.
- Problem solving : Mutual, judicious.
TRADITIONAL SUPPLY RELATIONSHIP.
- Price emphasis for supplier selection.
- Short-term contracts for supplies
- Bid evalution
- Large supplier base.
- Propietary information.
- Power-driven problem solving.
Supply Chain Partnerships.
- Multiple criteria for supplier selection.
- long term contract for supplies.
- intensive evaluation of supplier value-added.
- Few supplier.
- Shared information.
- Mutual problem solving.
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