Professional Documents
Culture Documents
Agenda for
for Today’s
Today’s Presentation
Presentation
SCM
SCM and
and Keys
Keys to
to
Competitive
Competitive Advantage
Advantage
Collaboration
Collaboration
And
And
Collaborative
Collaborative Logistics
Logistics
Benefits
Benefits of
of Collaboration
Collaboration to
to
Logistics
Logistics and
and Supply
Supply Chain
Chain
Logistics and Supply Chain Management:
An Evolutionary Perspective
Focus
Supply Chain
Management
Supplier #1
n Increased efficiency in
transactions and
communications
Manufacturer #1
n Focus on cost reductions
internal to each of the firms
Distributor #1
n Examples include EDI,
e-mail, and CPFR
Retailer #1
“Horizontal” Collaboration
Retailer #1 Retailer #2
“Full” Collaboration
n Synchronizes planning
Manufacturer #1 Manufacturer #2
and operations
n Maintains or improves
levels of customer service
Distributor #1 Distributor #2 n Benefits accrue to all
members of the
collaboration
Retailer #1 Retailer #2
Examples of “Full” Collaboration
Enablers and Impediments to
Collaboration
Enablers Impediments
n Common Interest n Doing things the old way
n Openness n Conventional accounting
n Recognizing who and what are practices
important n Tax laws
n Mutual help n Limited view of the supply chain
n Clear expectations n Annual negotiation process
n Leadership n Time investment
n Working together and adjusting to n Inadequate communication
one another n Inconsistency
n Cooperation, not punishment n Betrayal
n Trust n No experience with
n Benefit sharing collaboration
n Technology
Source: Mentzer, Foggin, and Golicic, “Collaboration: The Enablers, Impediments,
and Benefits,”Supply Chain Management Review, September/October, 2000.
Example of How Collaborative Logistics
Helps to Reduce “Hidden” Costs
n “Asset Repositioning” is a “hidden” cost that all members of a
supply chain pay, but none control individually
Tuesday
Shipper A
Wednesday
Thursday Shipper B
– Neither shipper understands how its actions affect costs of asset repositioning
– Carrier must optimize asset utilization to respond to both shipper requirements
– Since no single player controls asset repositioning costs, they are a “hidden”
cost paid for by all … this problem may be relieved through use of
“Collaborative Logistics”
7 Immutable Laws of
Collaborative Logistics
Collaborative Logistics Networks Must Support:
n Real and Recognized Benefits to All Members
n Dynamic Creation, Measurement, and Evolution of
Collaborative Partnerships
n Co-Buyer and Co-Seller Relationships
n Flexibility and Security
n Collaboration Across All Stages of Business
Process Integration
n Open Integration with Other Services
n Collaboration Around Essential Logistics Flows
#1 Must Result in Real and Recognized
Law
Benefits to All Members
Integrate
Acclimate
Negotiate
Cooperate
Evaluate
Regenerate
#3 Must Support Co-Buyer and
La w
Co-Seller Relationships
n Must Support Communities of Trusted Partners
Collaborating to Fill Capacity and Streamline Processes
n Comprehensive Solutions are Required
Buyer
Buyer
Seller
Buyer
Aggregating demand to lower
costs and leverage buying power
Buyer
Co-Seller Collaboration
Supplier
Supplier
Customer
Supplier
Buffalo Wells
Cedar
Partner
Chicago
Rapids Mechanicsburg General Mills
Products
Information Assets
Documents Capital
How Does Collaborative Logistics Help
to Meet Logistics and Supply Chain
SC
MObjectives?
Overall Benefits of Collaboration to
Supply Chain Management
n Improved Efficiency and Effectiveness (Better, Faster, Cheaper)
n Increased Sharing of Information and Knowledge
n Facilitates Focus on Supply Chain and Corporate Core
Competencies
n Supply Chain More Responsive to Needs of Customer …
Creating Competitive Advantage over Other Supply Chains
n Facilitates Evolving Structuring and Restructuring of Supply
Chains … Addresses Issues of Disintermediation
n More Satisfying and Productive Inter-Personal and Inter-
Company Relationships throughout Supply Chain
Thank You, … and I would be happy
to provide more information on …