Asked by Jacob Murphree on May 07, 2024
Verified
How does cooperation and trust improve performance in a supply chain partnership?
Supply Chain Partnership
A strategic alignment between different parties in the supply chain, aiming to improve efficiency, reduce costs, and enhance product or service quality through collaboration.
Cooperation And Trust
The collaboration and reliability between individuals or organizations, fundamental for effective partnerships and teamwork.
- Recognize the importance of collaboration, cooperation, and trust in enhancing supply chain performance.
Verified Answer
A more natural aligning of incentives and objectives is achieved.When stages trust each other,they are more likely to take the other party's objective into consideration when making decisions.
Action-oriented managerial levers to achieve coordination become easier to implement.Sharing of information is natural between parties that trust each other.Similarly,operational improvements are easier to implement and appropriate pricing schemes are easier to design if both parties are aiming for the common good.
An increase in supply chain productivity results,either by elimination of duplicated effort or by allocating effort to the appropriate stage.For example,a manufacturer receives material from a supplier without inspecting it as long as the supplier shares process control charts.
A greater sharing of detailed sales and production information results.This sharing allows the supply chain to coordinate production and distribution decisions.As a result,the supply chain is better able to match supply and demand,resulting in better coordination.
Learning Objectives
- Recognize the importance of collaboration, cooperation, and trust in enhancing supply chain performance.
Related questions
In a VMI System,the ________ Must Share Demand Information with ...
Describe the Impact of Behavioral Obstacles on Supply Chain Coordination
Walmart Needs P&G to Satisfy Its Customers, and P&G Recognizes ...
The Authors Cite IKEA as Achieving an Intercompany Scope of ...
Improperly Structured Sales Force Incentives Are a Significant Obstacle to ...