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Collaborative Partnerships - Supply-Chain.Org

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<strong>Collaborative</strong> <strong>Partnerships</strong><br />

The partnership process shifts the way we view our specific relationships<br />

Arms Length Relationship<br />

! Price Emphasis<br />

! Many Alternatives<br />

! Functional Silos<br />

! Short-Term Buying<br />

! High Levels of Safety Stock<br />

! Expediting Due to Problems<br />

! Historical Information<br />

! Short Shipments<br />

! Inefficient Use of Capacity<br />

<strong>Collaborative</strong> Partnership<br />

! Lowest Total Systems Cost<br />

! Few “Alliance” Participants<br />

! Cross-Functional Teams<br />

! Long-Term Commitments<br />

! Compressed Cycle Times & Reduced<br />

Inventories<br />

! Anticipating Future Capabilities<br />

! “Real-Time” Information<br />

! Reliability and Customer Service Focus<br />

! Run Strategy & Synchronization<br />

9<br />

© 2002 PricewaterhouseCoopers, all rights reserved

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