SUPPLY
CHAIN PARTNERSHIP
Supply chain
partnership is a relationship formed between two independent entities in supply
channels to achieve specific objectives and benefits, and it is these
partnerships that form the essential building blocks of supply chain
management. Partnership existing between two or more person who join to carry
on a business or trade. Each person contributes skill, profit, property, labor
and expects to share in the profit and loss the business.
However,
firms within the supply chain have begun to realize the advantages enjoyed from
sharing of technology, information, and planning with other firms, even
competitors, and many modern business thinkers will claim that a more open and
relational attitude is not only advantages but actually essential to maintaining
a competitive advantages.
BENEFITS
OF SUPPLIER PARTNERSHIPS
Reduced
uncertainty for buyer in material costs, quality, timing, reduced supplier
base, which is easier to manage.
Reduced
uncertainty for suppliers in market and product specifications.
Reduced
uncertainty for both in reduced effects from externalities, reduced opportunism
and increased communications and feedback.
Joint
product and process development faster product development and increased shared
technology.
Greater
flexibility cost savings.
Time
management faster product development.
Shared
risks and rewards.
Stability.
RISKS OF SUPPLIER PARTNERSHIPS
Heavy
reliance on one partner can be disastrous if the partner does not meet
expectations.
Loss
of partnership control.
Partnerships
may actually open the weaker party up to negative influence potential and
research suggests that competitions may abate power.
Unlimited
liability
Not
fare because if only one who make mistake but the other partner need to bare
the risk also.
Disagreement
Lack
of harmony
Partnerships
may actually open the weaker party up to negative influence potential.
Can’t
make decision by yourself.
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