Supply chain partnership.docx

Supply chain partnership.docx

《Supply chain partnership.docx》由会员分享，可在线阅读，更多相关《Supply chain partnership.docx（9页珍藏版）》请在冰点文库上搜索。

Supplychainpartnership

SupplyChainPartnership

-Toyota'sSCPbackground

240.754

SupplyChainOptimization

Abstract

Inthepastfewdecades,thecompetitionbetweencompaniesisbecomingmorecompetitive.Themostofcompaniesarelookingforthemethods,inwhichcanimprovetheircompetitiveedge.Meanwhile,thecompetitionofmarketsharebetweencompanieshasbeeninsteadofthecompetitionbetweenthesupplychainofcompanies,especiallyintheindustryofretial.Asanindustryofpullingtheproductsofdailyconsumption,itssupplychainmanagementplaysanimportantroleinthecompetition.Andhowtoimprovethecooperationrelationshipbetweenvendorsandbuyersisoneofthemainpointtoimprovethesupplychainmanagement.Hencecompaniestriedtointegratetheirsuppliers'resourcesandsetupthesupplierstrategicpartnerrelationshiptoimprovetheirefficiencyofsupplychain.Thispaperwillanalysishowimportantsupplierspartnerrelationshipisandwhatarethedifferencesbetweentraditionalrelationshipandpartnerrelationship.AnditwillalsodiscusstheToyota'ssupplychainpartnership.

Introduction

Supplychainpartnership（SCP）,onwhichmoreandmorecompaniesarefocusing,meansthatinordertoachievequicklyresponsibility,sharethemarketinformationandmakegoodusesofresources,adevelopmentalassociationismadeupofagroupofcompaniesinthesupplychainincludingsuppliers,manufactures,distributors,retailers.Inthealliance,thecompaniessharethebenefitsandrisks,andusetheircoretechnologytocomplementtheadvantagesanddisadvantages.TheSCPmakeseachmemberofthealliancefocusontheirrelevantbusiness,sothatitimprovesthecompetitiveedgeofwholesupplychain.

Duringthe1980s,academicsandconsultantscreatedanew‘bestpractice’model

ofsupplychainmanagementbasedontheirinterpretationsofthesuccessful

JapaneseautomakerToyota.Thenewmodelwassaidtobeapre-requisiteto

competitivesurvivalinthetwenty-firstcentury（Womack,JonesandRoos,1990）.

Variousversionsofithavebeendeveloped,thoughallofthemsharetwoessential

characteristicsincommon.First,theyincorporatelong-term,co-operative

partnershiprelationshipsbetweenbuyersandsuppliers,withhighlevelsof

interactionbetweenfirms.Thisissaidtodeliversuperiorperformanceintermsof

cost,qualityandspeedindailyinteractionsandinnewproductdevelopment.The

secondsharedelementisthejuxtapositionofthenewmodelagainstopposite

practicestraditionallywidespreadintheWest（seeTable）.Thisbinaryold/new

approachpresentsfirmswithanattractivemessage.Thenewmodelmayrequire

challengingandrevolutionarythinking,butitpromisestoturncompetitivedecline

intoworldclasssuccess.

Items

Traditional

Partnership

PurchaseCriteria

Lowprice

Productioncapacity,flexibility,quality,deliveryservice,competency

DesignSource

Customerdesign

Co-design

NumberofSuppliers

Severalforeachparts

Oneorfewforeachparts,evenforagroupofparts

CustomerBusinessVolumeperSupplier

Smallandgreatnumberofsupplierstakepartintheprocess

Highandonlysingleorfewsuppliersbeingrecognisedasthesupplingparts

TypeofContact

Singleorder

Cooperateaspartnerrelationship

TermsofAgreement

Duration

Shortterm

Longterm

Cost

Lowprice,buthightransactioncost

Pricenegotiated,reductionofprocesscost

Quality

Variableandcustomreliesonincominginspection

HighqualityundertheprogrammeofTQMandSCP

Shipping

Infrequenceandlargebatches

Supplyon-demand,frequentdeliveriesinsmallquantities

OrderMechanism

Faxorphone

Faxorphone,Kanban,EDI

Customer-SupplierInteraction

Materialandparts

Material,parts,technology,service,expertise

Ascanbeenseeninthetable,therelationshipbetweensuppliersandcustomersisunstableintraditionalrelationship.Firstofall,insucharelationship,thebuyerscanpurchasethelowestpriceofmaterial,butthatwillleadtomorefiercecompetitionbetweenthesuppliers.Secondly,priceisthemainstandardforchoosingandtheoriginalofferpriceistemporary,becausethesupplierswilltrytochangethepriceaftertheyarechosen.Thirdly,duetotheshort-termcontractbetweenthebuyersandthesuppliers,therelationshipbetweenthemisquiteloose,whichleadstokeephighinventorytoavoidtheunpredictablemarketdemandforbothofthem.Finally,imperfectionqualitysysteminthosesupplychainscausesthatthecompaniesneedtosolvetheproductproblemscontinuouslyinthemarket.

Whycompaniesneedtoconstructsucharelationship（SCP）?

Therelationalviewofsuppliermanagement,akeyaspectofrelationshipmarketing,hasoftenbeendeemedtocontributetothesuccessofJapanesefirms.Inthisview,abuyerandasupplierestablishandmaintaincloserelationshipsonanongoingbasis.Theysharemoreinformationandbettercoordinationoftasks（Ganesan,1994;Iacobucci,1994）;makerelation-specificinvestments,humanandphysical,tofacilitatecostreductionandqualityimprovement（Hill,1995;LohtiaandKrapfel,1994）;and,buildtrust-basedrelationshipsthatcanminimizetransactioncosts（BarneyandHansen,1995;DoneyandCannon,1997;LewinandJohnston,1997;Sheard,1996）.Suchpartnerships,however,arecostlytoestablishandmaintain,and,

further,mayreduceacustomer'sabilitytoswitchawayfrominefficientsuppliers（HeideandJohn,1990;Nielson,1996;Salmond,1994）.Insum,thecentralthemeoftherelationalviewisthattrustandcommitmentencouragethelong-termrelationshipsbetweensuppliersandbuyerstodevelopaspartnerships（MorganandHunt,1994;HuntandMorgan,1994）.

Intraditionalmodel,mostofmanufacturesaregetusetocooperateagreatnumberofsuppliers,andsomeoftheirprojectsneedtobecompetitivebidding.Hencethesupplierstrytomakeareductionofthecostofmaterialtogainthecontract.Althoughthefirms'goalofdecreasingproductioncosthasbeenachievedbythereductionofpurchasingcost,ononehad,themanufactureswilllosetheleadingroleinthesupplychainbecauseofoverdependingonthesuppliers.Ontheotherhand,thequalityofsupply（includingthequalityofproducts,deliverytimeandservicelevel）willbereduced,becausewhenthesupplierstrytogetmoreprofitsintheproducts,theywillbetendtodeclinetheinvestmentandtheproductioncost.Meanwhile,tradingtonumerousvendorsleadstothehightransactioncostofmanufactures.Andthereductionofproductsqualityleadstothedecreasingofcustomers'satisfactionandthelossofcustomers'loyalty,whichmakesthemanufacturesfacetothelossofmarketshare.Inordertomaintainthemarketshare,themanufactureshavetoreducetheretailpricetomeettheneedsofcustomersandtheyalsoneedtodecreasetheproductioncost,whichleadstothenegativecycleinthesupplychain.Thosephenomenonwillcauseavarietyofproblemsinthesupplychain,suchasthelossofcustomers'confident,thehostilitybetweensuppliersandmanufacturers.However,moreandmorescholarsandfirmsrealisethatinordertoincreasethevalueofproductionandmaximisethecustomerservicelevel,astrategicrelationshipmustbesetupinthesupplychainbetweentherelevantcompanies.

Whataretheadvantagestosetupasuppliers-partnerrelationship?

Firstofall,thecompaniesinthesamesupplychainwillgainmorebenefitswhentherelationshiphasbeensetup,becausethesuppliers,manufactures,distributorsandretailerscanconsultthesolutionsofproductiondesign,supplyofspareparts,salesanddistribution.Formanufactures,therearesomeadvantagesshownasbelow:

·Itcanshortenthetimeofnewproducttomarket.IntheSCP,itisunnecessarytothemanufacturestospendmoretimeondesignthesparepartsofproducts,becauseishasbeenoutsourced.Andtheycanfocusonresearchinganddesigningthenewproducts,whichleadstoshortenthecycletimeofnewproducts.

·Productioncostcanbereduced.Duringthecooperation,thesupplierscantakepartintheprocessofproductionandthedesignofnewproducts.Meanwhile,themanufacturescanalsoknowmoreaboutthedesignandprocessofsuppliers.Thoseinteractionscanhelpthemselftopointoutproblemsfromtheprocessandimprovethetechnologytoslovethem,whichcanachieve"Win-Win"andreductionofproductioncost.Inaddition,therearesevenkindsofwasteintheproducingprocessconcludedbyToyota:

thewasteofoverproduction,thewasteofwaitingtime,thewasteoftransportation,thewasteofinventory,thewasteofmanufacture,thewasteofmovementandthewasteofsubstandardproduct,butsincethecompanyadoptthestrategyofsettinguptheirSCP,theycansolvethoseproblemseffectively.

·CustomerservicelevelwillbeimprovedbytheSCP.Firstofall,retailers,whichareclosedtotheterminalconsumersandreceivemoreinformationofmarket'sdemands,canprovideavarietyofsuggestionsonthedesignofnewproductswhichcanbepulledbythecustomers'demandnotthetraditionalpushingmarketing.Inthecooperationwithsuppliers,manufacturescanproducetherightproductswhichmeansthattheproductswillmeettheneedsofthedemands.Inaddition,improvementofsupplyqualityleadstosupplythesparepartstothemanufacturesattherighttime,rightplace,rightquantity,whichcanimprovethequalityofproductsandshortenthelead-time.Furthermore,whencustomerscomplaintheproducts,theretailers,manufacturesandsupplierswilltrytosolvetheproblemtogether,becausetheyneedtoshareresponsibilityfortheriskinthesupplychain.Asregardssuppliers,whentheysetupthealliance,the