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Collaborative Supply Chain MGT

Collaborative supply chains involve companies within the supply chain working together by sharing ideas, information, processes, knowledge, risks, and rewards. This collaboration can help minimize the bullwhip effect, accelerate entry into new markets, and change the cost/value/profit equation. Collaboration occurs through synchronized production scheduling, collaborative product development, collaborative demand planning, and collaborative logistics planning. The benefits of a collaborative supply chain include reduced inventory, increased revenue, lower costs, improved customer service, and more efficient use of resources for all members of the supply chain.

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58 views9 pages

Collaborative Supply Chain MGT

Collaborative supply chains involve companies within the supply chain working together by sharing ideas, information, processes, knowledge, risks, and rewards. This collaboration can help minimize the bullwhip effect, accelerate entry into new markets, and change the cost/value/profit equation. Collaboration occurs through synchronized production scheduling, collaborative product development, collaborative demand planning, and collaborative logistics planning. The benefits of a collaborative supply chain include reduced inventory, increased revenue, lower costs, improved customer service, and more efficient use of resources for all members of the supply chain.

Uploaded by

tanya_raizada5481
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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COLLABORATIVE SUPPLY CHAIN

Sahil Puri (37)

Collaborative Supply Chain What Is It?


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The means by which companies within the supply chain work together towards mutual goals by sharing

Ideas Information Processes

Knowledge
Information Risks Rewards Accelerate entry into new markets Changes the relationship between cost/value/profit equation

Why collaborate?

Collaborative Supply Chain


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The only method that has the potential to eliminate or minimize the Bullwhip effect
Retailers

Suppliers

Synchronized Production Scheduling

Manufacturer

Collaborative Product Development

Collaborative Demand Planning

Distributors/ Wholesalers

Collaborative Logistics Planning Transportation services Distribution center services

Logistics Providers

Conventional System
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Collaborative Efforts
5

SCM Collaboration at Different Levels


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How to make Supply Chain Collaboration SUCCESSFUL ?


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Organisation should collaborate internally before trying external collaboration. Help partners to work with the organisation. Share the savings. Start small (a limited number of selected partners) and stay focused on what you want to achieve in the collaboration Using a comprehensive metrics program in place that allows to monitor partners performance Make sure people are kept part of the equation

Systems do not replace people.


Making sure organization is populated with competent professionals having experience.

Benefits of Collaborative Supply Chain


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MANUFACTURERS
Reduced inventory Increased revenue Lower order management costs Higher Gross Margin Better forecast accuracy Better allocation of promotional budgets

MATERIAL SUPPLIERS
Reduced inventory Lower warehousing costs Lower material acquisition costs Fewer stockout conditions

SERVICE SUPPLIERS
Lower freight costs Faster and more reliable delivery Lower capital costs Reduced depreciation Lower fixed costs

Improved customer service More efficient use of human resources

Source: Cohen & Roussel

THANKS

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