Operations and the corresponding strategies must increasingly be seen from a network connection viewpoint, particularly in quickly evolving consumer industries. This has several tactical ramifications. The first is education. Network-level thinking promotes a broader viewpoint on the supply system. By doing this, you develop strategic thinking that goes beyond your company and its direct suppliers and clients.
The Partnership Methodology
According to an empirical study by Christopher and J. utter (2000), a supply network connection consists of five essential components. In this survey, managers were asked what they believed to be the most crucial relationship components. The results are detailed below.
Selection and Classification of Partners
Regarding the advantages to be obtained, the resources and investments required, and the risk associated, the varying degrees of partnership agreements are a problem. A situational strategy, relationship management entails the creation and upkeep of a portfolio of relationships with various types. As a result, at the level of the working relationship’s operations, integration demands are frequently balanced with economic and strategic considerations. Making the appropriate choice to represent the required relationship portfolio is an important effort.
Managing Relationships with Others
How can the many interpersonal interactions at different organizational levels be brought together to constitute a unified corporate strategy? Extremely complicated relationships are those built on numerous interface structures. Instead of relying on the whims of people, these connections need to be controlled and institutionalized at the company or corporate level. As a result, the success of long-term relationships will be greatly influenced by top management’s dedication. Furthermore, creating a supportive culture across the company through the cascading of the policy requires having a strategic vision of these connections.
External Assistance
Unfortunately, corporate interactions have traditionally been antagonistic in many economic areas. New planning and execution methods are necessary for the creation of cooperative supply network approaches and the resolution of inter-firm issues. A crucial phase in this procedure is the selection of a relationship promoter. Successful relationships frequently grow under the guidance of a committee structure that includes the relationship’s most crucial players (internal and external to the firm).
Relationship Observation
The management of ongoing procedures that provide value and are supported by a monitoring mechanism is essential to a successful partnership. Methods of value evaluation. All individuals engaged in boundary-spanning activities must participate in team monitoring and feedback on relationship performance and process.
Final words
We can now connect the prior discussion about demand complexity and the requirement for flexible responses with the kinds of supply network connections that are likely to be used in the future as part of an operations strategy after reviewing the nature of a supply network relationship.
