CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

These may be functions who are unwilling to work together to manage the supply chain, or may
even want to negatively affect the performance of the supply chain.
These are relationships with external organizations where their goals and actions do not have any
impact on the performance of the humanitarian organization supply chain. This may be another
humanitarian organization operating independently where there are no opportunities to share
resources, information, etc. Or, it could be a supplier who is supplying goods that are not used in
the supply chain process.
These are relationships with other functions/departments where the goals and actions of that
function do not have any impact on the performance of the supply chain. This may be the HR
function at a time when there is no recruitment or training required or taking place.
It is important to recognize that different relationships may be required with the same external
organization or internal function at different times, as goals may change and the type of
interdependence may also change.
One other factor that can affect the decision as to what type of relationship is appropriate, especially
with external organizations, is the existence of organizational strategies or policies that require
specific relationships to be developed with specific organizations. For example, an organization may
have a specific policy on the relationship between it and the military during aid operations.
As a consequence of the importance of suppliers to the performance of the supply chain, we will
look at some of the specific reasons for developing different types of supplier relationships.
As with any relationship, the type of relationship that must be developed with suppliers will vary,
depending upon different circumstances. We will look at a number of different ways of determining
the most appropriate relationship with different suppliers.
We will start with two common models that are appropriate for any customer/supplier relationships,
and are used by purchasing and supply chain managers to help select the most appropriate
purchasing strategy and supplier relationship. These models are called:
• Kraljics Purchasing Model
• Kenton Model
The two dimensions of the Kraljics matrix are:
• Spend
• Upstream risk