Building Stronger Supply Chain Relationships
The saying goes that you know who your friends are when the going gets tough. Those are the ones that show up when there is work to be done, visit when someone is sick, or to just be around for support. That is a test of a strong relationship.
The same is true when things are tough in your supply chain. Situations will arise especially with large international supply chains. There can be issues with the environment, government, or just accidents. This will test the strength of the relationship and the supply chain.
This week’s esourcing wiki is Supply risk Basics . It covers various supply chain risks such as network, environmental and compliance.
An article published earlier this year by Bloomberg, Big Companies Step Up Efforts to Trim Environmental Risks in Supply Chain, reviews how some organizations are working to reduce risk. It definitely requires an investment in order to gain rewards long term.
One example cited is with GE. They found a large percentage of suppliers’ performance did not measure up, especially in countries where regulations were not as stringent. They worked with the managers at those factories, put a scorecard in place and have seen some improvement.
Another example is with Wal-Mart and efforts for reducing greenhouse emissions due to fertilizer use by the farmers that supply them. They are working with the farmers to optimize fertilizer use, prevent run off and reduce the farmer’s expenses. It also reduces the gas emissions and improves the water supply.
What has your organization done to reduce supply chain risk and improve environmental factors overall? Have those efforts strengthened your relationships across the supply chain? Will they ‘be there’ when the going gets tough? Will you?
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