Coordination and collaboration in supply chain management

Organizations that once focused primarily on distribution networks, profit differentiation and improved marketing for their success have now embraced integrated supply chain management as a pivotal strategy component for growth and profitability in the global economy.

But the process of getting the right product to the right place at the right time at the right price -- the traditional touchstones of supply chain success -- remains a challenging and often-times elusive goal.

Collaboration and coordination

Supply chain experts from Boston Consulting Group (BCG) and Wharton agree that a careful coordination of supply chain elements and a high level of collaboration are among the primary criteria for creating successful supply chain management.

When clients go broader in the map, supply chain has to leverage collaboration and coordination.

    "The days when business was done three doors down from the supply room are over"

The goal is to match supply with demand at every stage, at every value-added point, so that at the end of the day there is a customer who has a demand and the supply chain figures out how to get the product to that customer at a time and place and a price that they are willing to pay.

A CLASSIC EXAMPLE OF DELL

Dell Computers and its supply chain model of mass customization -- a computer isn't made until there's a custom order for it. "Dell's whole model is based on a supply chain advantage.

SO WHAT IS THE MORAL OF THE STORY?

Design a supply chain that is based on a sound strategy, ensure all parts of your supply chain -- both internally and externally -- have access to good and consistent data, and empower people to make decisions quickly. Build a supply chain that is comfortable with uncertainty and quick to react by taking down the barriers that prevent success.