Example Of Article Review On Supply Chain Relationships
Acquisition of high-quality goods and services depends on a supply chain that is effective. Factors such as mass-customization strategy, competitive pricing, just-in-time delivery and massive improvements in information technology have resulted in world-class completion affecting the characteristics and nature buyer-supplier relationship. All this has manifested itself in knowledge management (KM), customer relationship management (CRM) and supplier relationship management where suppliers and clients are more interested in working together in the long-term. In the past, buyer-supplier relationships were short-term with no future commitments and each party was always seeking to get the maximum benefits from a particular transaction.
In order to tap maximum competitive advantage from the supplier-buyer relationship, it is crucial to have a trust-based and partnership-oriented relationship as opposed to arm’s length and adversarial view of the other party. Supply chain evolution has been explained using two models. Model 1 is based on Poirier and Quinn five levels of supply chain evolution. Level 1 focuses on improvement of process and functional improvement of the supply chain. The second level is achieving corporate excellence of the enterprise. Level 3 builds on partner collaboration; level 4 involves the creation of value chain collaboration with improvements in supply chain visibility and transparency while level 5 is concerned with attaining full network connectivity.
The second model is developed from Richard Barrett’s seven corporate conscious levels. The first level is the survival level that is concerned with organizations financial health. Relationship level is involved in attaining harmonious inter-organizational and interpersonal relationships. The desire to improve member’s confidence and ability to compete is accounted for in self-esteem level while transformation level focuses on shifting interests to interdependence with business partners from self-interests. The internal cohesion level incorporates equality, openness and transparency in the supply chain members in order to develop their capability and potential. Making a difference is the sixth level where an organization embraces social and community responsibility. The last level, service level, is concerned with the welfare of humanity and interconnectedness of organizations.
Long-term, sustainable and healthy supply chain relationships are characterized by cooperation, trust, commitment, compatibility and open communication. Visionary supply chain ought to continuously revolutionize their operations in order to remain competitive. It is possible is the organization embrace the use of tools and exercises such as team building and activities to enhance effective listening and negotiation skills.