CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

Trust will first develop on the basis of calculation, i.e. calculated risk. At this stage they are willing to
take some risks in trusting the other, but they do this somewhat guardedly. They are also willing to
take the risks because they are aware that there are some safeguards or deterrents, should one
party not act/perform in the agreed upon way. These safeguards, for external organizations, may
include legal safeguards, i.e. penalty clauses in contracts.
Developing trust at this level requires both parties to be clear and realistic about the commitments
they make to each other. If the commitments are realistic, then both parties should be capable of
honoring them. Both parties should check the commitments of the other party to ensure they are
not being unrealistic about what they can deliver to the relationship. Some relationships will stay at
this level of trust. Others will move on to the next level of trust.
At this level parties will start to develop knowledge of each other. If they are happy with what they
find out, and how the other party performs and behaves, they will move to the next level of trust,
which is based on mutual understanding. Both parties feel comfortable with each other because
they understand each other, they have proved to be reliable, and they understand what each other’s
expectations are from the relationship. Developing trust at this level involves both parties’
willingness to share information with the other.
As both parties build up knowledge of each other, and they continue to be reliable and predictable,
they will develop a mutual confidence. They can then move, if they like, to the next level of trust,
which we will call bonding trust. Ideally, this level of trust should not be dependent on the
individuals who are working together from each party, so that the level of trust will continue should
these individuals change.
It is important that, whatever level of trust there is between organizations or functions, there is a
clear process for dealing with conflicts and failures. Trust will disappear if conflicts and failures are
not dealt with as quickly as possible. The way with which they are dealt should be clear and may
include an informal and/or formal process.
Organizations, however, are made up of people, it is those people who work together, and it is those
people who have relationships with people in other organizations or people in other
functions/departments within their organization. People managing the supply chain and carrying
out supply chain activities are no different from other people working in the organization. They
behave in the same way as other people, and they have the same range of personalities and
emotions that affect how they behave. Trust is as important between people as it is between
organizations and between internal functions. In fact, the trust between organizations and between
different functions can be significantly affected by the quality of trust that exists between the people
working in those organizations and functions.