The Collaboration Journey: Are we there yet?
After 20 plus years of talking about collaboration, there is still a long way to go.
Twenty years ago, Boston Consulting Group’s Harold Sirkin warned that competition is no longer “company vs. company but supply chain vs. supply chain,” inviting a new era of supply chain collaboration. Pundits soon referred to collaborative supply chain design as the “ultimate core capability” and the “enabler of winning business models.” Based on your own experience with the day-to-day tussles that occur in the typical supply chain, you may wonder: “What on earth were they thinking?” The answer: Industry watchers had witnessed the stunning success of Honda and Toyota and viewed collaboration as inevitable.
For instance, as Honda prepared to bring the 1998 Accord to market, Honda’s internal analysis revealed two key points:
THE GOOD NEWS. Honda designers had developed an outstanding, customer-pleasing car.
THE BAD NEWS. As designed, the Accord would be too pricey. Honda needed to cut costs by 25%.
Because 80% to 85% of the typical Honda is sourced from suppliers, Honda had only one option: Ask suppliers for help. And that’s exactly what Honda did. Working with suppliers, the automaker lowered the cost of the ‘98 Accord by almost 30%. The launch was a success. Many of the technological advances developed for the 1998 Accord appeared in the next iteration of the Civic, a model that became a huge cash cow for Honda. The bottom line: Honda and its suppliers had shown that supply chains that work together win together.
This complete article is available to subscribers
only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access. |
Latest News
Cargo Shipping Remains on Hold in Baltimore Following Bridge Collapse Maximizing the Bottom Line: The Power of Procurement Baltimore Bridge Collapse Latest Supply Chain Disruption 6 Questions With … Tom Plotkin February and year-to-date U.S. import volume is solid, reports S&P Global Market Intelligence More NewsLatest Resource
2024 Supply Chain Management Readiness Index Lack of predictive view leaving organizations vulnerable to disruptionAll Resources
Download Article PDF |
Twenty years ago, Boston Consulting Group’s Harold Sirkin warned that competition is no longer “company vs. company but supply chain vs. supply chain,” inviting a new era of supply chain collaboration. Pundits soon referred to collaborative supply chain design as the “ultimate core capability” and the “enabler of winning business models.” Based on your own experience with the day-to-day tussles that occur in the typical supply chain, you may wonder: “What on earth were they thinking?” The answer: Industry watchers had witnessed the stunning success of Honda and Toyota and viewed collaboration as inevitable.
For instance, as Honda prepared to bring the 1998 Accord to market, Honda’s internal analysis revealed two key points:
THE GOOD NEWS. Honda designers had developed an outstanding, customer-pleasing car.
THE BAD NEWS. As designed, the Accord would be too pricey. Honda needed to cut costs by 25%.
Because 80% to 85% of the typical Honda is sourced from suppliers, Honda had only one option: Ask suppliers for help. And that’s exactly what Honda did. Working with suppliers, the automaker lowered the cost of the ‘98 Accord by almost 30%. The launch was a success. Many of the technological advances developed for the 1998 Accord appeared in the next iteration of the Civic, a model that became a huge cash cow for Honda. The bottom line: Honda and its suppliers had shown that supply chains that work together win together.
SUBSCRIBERS: Click here to download PDF of the full article. |
Subscribe to Supply Chain Management Review Magazine!
Subscribe today. Don't Miss Out!Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
It’s high time to go beyond visibility Driving supply chain flexibility in an uncertain and volatile world View More From this Issue