On Relationships
Frank Quinn, Editor -- Supply Chain Management Review, 3/1/2004
We've all heard the maxim that sales is all about relationships. Can the same thing be said about supply chain management?
Based on a recurring theme running through this issue, the answer appears to be a resounding yes. In fact, one could argue persuasively that the ability to forge effective relationships is every bit as important to supply chain success as it is to sales success.
Supply chain relationships are examined this month from several interesting perspectives, both practical and theoretical. From the practitioner's perspective, Robert Rudzki offers a real-world view of what constitutes—and, just as importantly, what does not constitute—an effective supply chain partnership. Drawing on his executive experience at Bayer Corp. and earlier at Bethlehem Steel, Rudzki describes the techniques he's used to form winning partnerships with both suppliers and customers. But before jumping into any relationship, he's learned, you need to first figure out the type of partnership you want to develop. Some should be strategic; others can be largely transactional.
The advantage of forming close partnerships with external suppliers and customers is fairly intuitive. Less intuitive is the value of building relationships within your own organization. In his piece titled "What Everyone Needs to know About SCM," Lehigh University professor Robert Trent insists that supply chain management is not just for supply chain managers. If your supply chain initiatives are to succeed, he says, other key components of the company like finance, R&D, and human resources need to know the basic principles of SCM, too. And the first step in creating that understanding is to build a solid relationship with those folks that can serve as the foundation for ongoing education.
Underpinning all successful relationships, whether they be external or internal, is trust. In their article, researchers Stanley Fawcett, Gregory Magnan, and Alvin Williams note that the term is overused and often misused and abused. Yet while this may be so, they emphasize that real trust—incorporating things like honesty, open communication, and shared risk and reward—is absolutely essential to any type of meaningful relationship. The authors provide readers with a blueprint they can follow to ensure that all of the key dimensions of supply chain trust are in place.
What's the take-away message in all of this? In our professional lives as in all other aspects of our lives, it takes work to make relationships work.
SCMR Expands: Beginning with this issue, Supply Chain Management Review expands its publication schedule. We will publish two additional issues in 2004, for a total of eight issues. You will receive the magazine in March, April, May/June, July/August, September, October, and November/ December. We hope that you enjoy the additional insights and information.
fquinn@reedbusiness.com





















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