Dynamic change has always been a part of supply chain management. However, the current scope and speed of change to be overcome are completely new. As a result, supply chain disruptions have become a constant in 21st century supply chain management. Global disruptions and daily uncertainty make for fragile supply chains.
A VUCA landscape has never been more evident than today, forcing businesses to find innovative possibilities for collaboration. The VUCA acronym represents a digitized world characterized by volatility, uncertainty, complexity and ambiguity.
Due to these developments, supply chain management now has unprecedented visibility in the C-suite – and has gone from being a necessity to a central driver of value. In times of uncertainty, trust-based partnerships and (cross-industry) collaboration are not only important, but also necessary for supply chain resilience and growth.
Author
Julian Schulcz
COO, 4flow
Collaboration both inside organizations and between them
Of course, working together requires mutual trust – and aligning on common goals and empowering individual stakeholders are keys to success. There are different models of working together, from cooperation to collaboration to coopetition, or collaboration between competitors.
Collaboration begins at the core of an organization, at the team level, and develops within an organization either between functions or product groups.
Collaboration within an organization ends at the corporate level – beyond the boundaries of a business, further steps include collaboration with partners or suppliers, and finally with competitors.
There are considerable advantages to an alternative, integrated and collaborative planning approach, including:
- Lower inventory levels along the supply chain
- Higher service level and customer satisfaction
- Lower overall transportation costs
- Smoother communication across supply chain stakeholders
- More sustainable operations thanks to lower carbon emissions
To begin planning collaboratively, there’s no need to turn the entire organization on its head. Beginning with small steps, stakeholders can recognize the advantages of coordinated planning within a given business area.
Integrated collaboration makes businesses more flexible, more agile and more effective as a team. Together with partners, they can reduce their own weaknesses, make the most of their strengths and improve resilience. In the end, collaboration improves the effectiveness of all partners and increases their ability to succeed even in the most difficult conditions.
