Supply Chain Relationships

Supply Chain Relationships

1. Most importante ingredient for successful SCM

   • Trusting relationships among partners in the SC

2. Strategic alliances

   • Two or more organizations cooperate and willingly modify their business objectives and practices to help achieve long-term goals and objectives
     • Supplier-Customer
     • Supplier-Supplier
     • https://www.youtube.com/watch?v=ghS_P--Mo3c

3. Types of relationships

   • Vertical
   • Horizontal

4. Process Model for Forming Logistics Relationships

   • 1. Perform strategic assessment
   • 2. Decision to form relationship
     • Drivers
       • Compelling reasons to partner
     • Facilitators
       • Corporate environmental factor that enhance partnership growth
   • 3. Evaluate alternatives
   • 4. Select partners
   • 5. Structure operating model
   • 6. Implementation and continuous improvement

5. 3 important types of collaboration

   • 1) Vertical
   • 2) Horizontal
   • 3) Full collaboration

6. Third-Party logistics (3PL)

   • External supplier that performs all/part of of company's logistics functions
     • Transportation based
     • Warehouse/ Distribution based
     • Forwarder based
     • Financial based
     • Information based
   • https://www.youtube.com/watch?v=ILah4IzMTZs

7. Fourth-Party Logistics (4PL)

   • Manage and direct the activities of multiple 3PLs

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