Intended learning outcomes: Present trust-building measures in partnership relationships. Disclose the reasons for (1) creating the required conditions in your own company first, (2) – where possible – placing emphasis on local networks (local sourcing), and (3) not exploiting strengths in your company’s negotiating position.
In the selection of potential partners, the fundamental consideration is whether a partner can fulfill the required goals. Partners must formulate these objectives in a sufficiently clear manner, in order to master deviations in results from the contractual agreements. However, to cooperate long-term and intensively in a supply chain, our research found the trust-building measures in Figure 2.3.3.1 to have proven significance.
Fig. 2.3.3.1 Trust-building measures in partnership relationships.
Even this incomplete list shows that a great deal of social competency is demanded of each partner in the supply chain. But exploitation of strengths in a company’s negotiating position is in accordance with the traditional buyer mentality. Many supplier relationships that go under the term partnership probably do not deserve that term. In many cases, the positioning of the supplier in the supplier portfolio reveals this fact, which can be definitely correct with regard to the current business activity. See also [Hand95], [WaEg10]. However, if the importance of supplier and buyer are mutually high, only the balanced partnership relationship will result in competitiveness of the entire supply chain. People working in procurement learn to become supply chain managers. And employees in sales, production, and logistics can also acquire the required knowledge from procurement and the other areas and successfully become supply chain managers.
Course section 2.3: Subsections and their intended learning outcomes
2.3 Designing a Strategic Partnership Relationship
Intended learning outcomes: Present target area strategies for intensive cooperation. Explain the Advanced Logistics Partnership (ALP) model with concepts such as building trust, working out collaborative processes in the supply chain, avoiding the bullwhip effect. Describe the virtual enterprise and other forms of coordination among companies.
2.3.1 Target Area Strategies for Intensive Cooperation
Intended learning outcomes: Produce an overview on the social competency of a company. Present target area strategies for an intensive cooperation in the partnership relationship, describe tasks and investment areas, and disclose possible supply chain risks entailed.
2.3.2 The Advanced Logistics Partnership (ALP) Model, a Framework for Implementation of Intensive Cooperation in the Supply Chain
Intended learning outcomes: Produce an overview on the ALP model: a framework for implementation of an intensive cooperation in the supply chain.
2.3.3 Top Management Level: Building Trust and Establishing Principal Relationships
Intended learning outcomes: Present trust-building measures in partnership relationships. Disclose the reasons for (1) creating the required conditions in your own company first, (2) – where possible – placing emphasis on local networks (local sourcing), and (3) not exploiting strengths in your company’s negotiating position.
2.3.4 Middle Management Level: Working Out Collaborative Processes in the Supply Chain
Intended learning outcomes: Present cooperative processes in the supply chain. Produce an overview on Collaborative processes in participative design/engineering. Describe contract issues for a partnership relationship.
2.3.5 Operational Management Level: Collaborative Planning, Forecasting, and Replenishment (CPFR)
Intended learning outcomes: Produce an overview on collaborative planning, forecasting, and replenishment (CPFR). Describe vendor-managed inventory (VMI) and continuous replenishment planning (CRP). Identify planning & control tasks for a partnership relationship.
2.3.5b Avoiding the Bullwhip Effect (Forrester Effect)
Intended learning outcomes: Explain the bullwhip effect. Identify the point of sale (POS) and the quick response program (QRP).
2.3.6 Managing a Strategic Partnership Relationship — A Practical Application
Intended learning outcomes: Present the ALP phases in the case of a high-tech Swiss machine tool manufacturer with a world market presence who wanted to introduce an intensive partnership relationship with suppliers of important assemblies.
2.3.7 The Virtual Enterprise and Other Forms of Coordination among Companies
Intended learning outcomes: Produce an overview on the virtual enterprise and underlying long-term network of potential partners. Present target area strategies for a virtual enterprise and disclose possible supply chain risks entailed. Describe some other forms of cooperation in relation to the virtual enterprise.
