Companies around the world are shifting to global supply chains, which although allows companies to source materials and manufacture products more cost-effectively it comes with many challenges. It can make it more difficult to connect with the right people in the supply chain, resolve concerns, and respond quickly to changes and unexpected events otherwise known as supply chain disruption.<\/p>\n\n\n\n
According to Zurich insider, 51.9% of organizations experienced supply chain disruption in 2019. And again, we are currently seeing significant supply chain disruption due to the Covid-19 pandemic with reports stating 75% of US companies are being affected. For businesses to achieve success within today’s competitive markets, it’s crucial for supply chains to be at their strongest. To help enforce this companies are turning to greater supplier collaboration. By working with their supply chain partners, whether they\u2019re located in the building, across the country or around the world and entering into alliances, they will be better equipped in dealing with such challenges.<\/p>\n\n\n\n
It is important for businesses to know where to collaborate to combine strengths. They should effectively communicate with common understanding and clear goals, plus their relationships need to be based on trust to successfully implement and execute supplier collaboration. Earning their trust by using honest communication, listening to their concerns and involving them in your processes ultimately makes them a vested partner in your supply chain.<\/p>\n\n\n\n
Companies that understand how to motivate supplier collaboration and manage their relationships accordingly are far more accountable to each other and benefit more than those that don’t. Those benefits of participating in supplier collaboration include improvement in business performance, customer satisfaction, market share, and more revenue, while at the same time enhancing positive relationships with supply chain partners. Supplier collaboration can also provide the competitive edge that enables all the trading partners in a supply chain to succeed and grow. In fact, according to a McKinsey survey of 100+ large companies across sectors, companies that regularly acted on collaboration had higher growth, lower operating costs, and greater profitability than other competitors in their sector.<\/p>\n\n\n\n