The benefits of supply chain collaboration mirror the benefits of customer retention: Profits increase through long-term relationships.
This is because, when business partners can spend enough time collaborating and understanding each other, quality production and ethical working standards harmonize across supply chains.
Ultimately, wasted efforts are reduced in production after generating a better working relationship with your peers and buyers.
In this article, we'll explain what supply chain collaboration is and 4 powerful ways your business could benefit from this collaboration.
Supply chain collaboration, a practice growing in popularity, brings autonomous businesses together to improve operations.
But in what ways?
There are two kinds of supply chain collaboration: horizontal and vertical.
With that said, approaching other businesses about forming a partnership requires you to outline your goals in order to gain the benefits of supply chain collaboration. Why?
It allows you to tailor your interactions in order to achieve certain benchmarks – and avoid stepping on toes. The most common goals include:
Along with the growing trend of supply chain collaboration comes new and innovative ways to make this level of communication and information sharing more efficient. Cloud software can bring suppliers, vendors, warehousers--even companies with common business interests--under one digital roof.
Once you’ve established an end-to-end collaboration platform, be it horizontal or vertical, you can begin to reap the benefits. Supply chain collaborations help you:
According to The Global Supply Chain Institute: “Supply chain talent management is arguably the most difficult and unique of all business requirements.”
Businesses understand the value of customer retention, as well as the level of competition vying for brand loyalty.
The same can be said for retaining talented supply chain management; an accomplishment that makes collaboration efforts so exponentially rewarding.
When your company can offer suppliers a unified platform to collaborate on daily QC matters, complex market regulations, as well as transparent ethical standards, you are showing the most talented SC operations that your brand is capable of raising their profile and generating more business for them!
The most talented supply chain operations would understandably wish to engage in long term collaboration with a business that can deliver this level of competence.
One-off partnerships can have a positive impact on company morale and revenue. However, it’s the long-term collaborations that have the most impact on your bottom line.
Further benefits derived from long-term supply chain collaboration are in practical, day-to-day terms. Simply put, the longer you collaborate with anyone, the better you are at understanding each other’s strengths, weaknesses and working methods.
Through the combination of collaborative experience and a streamlined communication, you will forego the waste that comes from repeatedly learning a new supplier’s operation, standards and habits.
You can more easily close costly production cycle gaps because you are keenly familiar with the pace at which your suppliers work.
Furthermore, with this developing knowledge, you can use quality and compliance software to organize QC inspection assignments, by testing requirement, as well as by inspector, so that the most qualified person is put in charge of quality checks and given detailed guidelines to follow.
No matter how passionate you are about development in your industry, you can only approach those developments from a single perspective.
Collaborating with a supply chain partner helps you overcome those limitations.
And once collaboration efforts develop over time, tangible production successes can be tallied and celebrated equally among your supply chain partners.
Consistent collaboration between long standing SC partners drive innovation, and innovation is what drives positive industry change, including greater supply chain transparency, customer engagement and retention.
To further boost your supply chain’s innovative potential, supply chain management software can fit QC data pieces into a larger, clearer performance picture available for everyone to act on.
Beyond that, your business generates new accounts courtesy of in-industry referrals.
Overall, garnering the good faith needed to earn a referral takes a fair amount of time. When you collaborate with a supply chain peer, however, you expand your network exponentially.
Word-of-mouth allows other operators and consumers to know about your business’s assets. In turn, you’ll benefit from a supply chain collaboration and have more accounts, lowered costs, and a sterling industry reputation.
QIMAone TIC-specific software can help you foster long term collaboration across your supply chain, because it gives all parties the incentive to maintain long term relationships.
With real-time data sharing and analysis, your company can connect with your supply chain peers and track your collaboration process progressively.
Organized, accessible off-the-shelf inspection templates will allow in-house inspectors to follow all market regulation checks as well as industry best practices.
Additionally,a QC task assignment dashboard and automated third-party scheduling--say for annual certification renewals--will give your busy supply chain managers more time for improvement and innovation.
The time is now for creating a supply chain collaboration software with benefits that last!
Want to see how it works?
Learn more here or schedule a demo.