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Here's To Success: 3 Steps To A Successful Supply-Chain Collaboration

31 July 2016 by Linda Holmes

If you run a business that relies on a supply chain, you need to make sure that each member of the chain is working efficiently. One kink can cause the entire chain to fall apart, which can spell economic disaster for your business. Luckily, there are effective ways for businesses to collaborate effectively in a supply chain atmosphere. Here are three strategies that will help ensure a successful supply chain initiative.

Collaborate Where You're Strong

As a business owner, you may want to use supply-chain collaboration as a way to bolster up your company's weak points. Unfortunately, that's not the best way to get the most out of the collaboration process. When collaborating with other businesses, it's important that you put your strongest assets forward. The process of putting your strengths ahead of your weaknesses allows you to continue successful growth by building on the positive aspects of your company.

Choose the Right Benefit-Sharing Model

When you enter into a supply-chain collaboration with other companies, it's important that you consider the benefit-sharing model you plan on implementing. You may think that the benefit-sharing model needs to be on a win-win level for both companies. However, even a win-lose benefit-sharing model can bring benefits to your company. For instance, if the plan that's being considered has your company experiencing an increase in logistical costs – such as shipping costs – you might be tempted to view that as a win for the other company, but a loss for you. However, by requesting a discount along other aspects of the supply-chain, you can turn the win-loss scenario into a win for your company, as well.

Put the Best Partners on Your Team

When choosing partners for your supply-chain collaboration team, don't assume that the biggest companies are going to make the best partners. By doing that, you might miss out on partnering with a smaller company that would provide you with better benefits. Large companies don't necessarily need your partnership, which means that they might not work as hard to ensure success for everyone. A small company will understand the value of a firm partnership, and work to encourage growth for all parties involved in the supply-chain.

If you own a business that does business with other companies, you might want to consider a supply-chain collaboration. The information provided here will help you create a collaboration that will provide maximum benefits for you and your supply-chain partners. Talk with a strategic procurement sourcing consultants for more help.

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