High-Impact Supply Chain Management - Essay Example

High-Impact Supply Chain Management High-Impact SCM Academia Research Academia Supply Chain Management is coordination between all the present factors under the controlling areas of the company, such as production, finance, marketing etc. Thus the collaboration is a prerequisite for SCM to work effectively for a company. The collaboration faces many obstructions as every one pursues own objectives and so the conflicts arise, the collaboration has to keep the things normal and help both the parties to reach their objectives in a desired way without compromising on the sidelined facts.

One good thing that SCM should concern with when pursuing the goal of collaboration is to having intense concerns on the customers as it say (SCM begins with the customers). When both the manufacturer and supplier would work jointly then they both can charge higher price from the customer, as if they both would be pursuing their own objectives then they could have given more benefit to the customer and not to each other, this technique is also known as vertical integration, in which both the manufacturer, supplier and even retailer work together for each others betterment.

The trends are also changing as now the manufacturer is not a price decider but it is decided by the market trends, so the control is done by the manufacturers on the production processes as lessening the profit can be costly, the collaboration with the suppliers and other parties can again be very helpful in keeping such conditions under control.2. Of course when we talk about collaboration, we are talking about winning the main objectives while giving up over small and unnecessary ones, same is the relation between the parties as a result of collaboration.

The sharing of loss apart from profit is another major outcome of any collaboration, as discussed earlier that both the parties work together and charge higher price from the customer and thus share the profit, but this ensures the settlement of the company and the supplier, both in the long run, unlike having profit in the short run and then having a period of threat. Also the technology has to play a bigger part in the well being of a firm in the long run, the good idea to share the risk and reward is to make the suppliers your partners, and ask them about what could they bring to the company, if their contribution is significant then the loss and profit sharing would be automatic and also because of the personal interest in the firm, the suppliers would work even harder to ensure the firm's success and to bring profits to it so that they can also get a piece. 3. Without collaboration, the business in this modern world cannot be operated, whether it is good and in the interest of the company or not, the company has to believe in collaboration as without collaboration, it would be impossible to sustain the constant threats and changing market trends.

The collaboration takes place between two or even more parties, which in this case are manufacturers, suppliers and at times even retailers. Collaboration provides both the parties an opportunity to work together and to grow supporting each other's objectives without compromising on own objectives. In Supply chain, the collaboration is difficult because there is imbalanced roles performed by the parties, as one is working so hard to complete the operations and one just have to seek the right place for it, of course it is contrary to the market rules.

BibliographyLeftwich J.A, Leftwich L.M, Moore N.Y, Roll C.R, "organizational Concepts for Purchasing and Supply Management Implementation", Santa Monica, CA: Rand, 2004.