Sustainable supply chain management discussion - Essay Example

These parties also happen to be in different countries with different modes of communication (language barrier), time zone, as well as geographical difference (Albrecht 2010). In a situation of this nature, the traditional systems of communication have proven clumsy and highly inefficient to handle the dynamics that has faced businesses. In this regard, there are three approaches in the supply chain management that has proven worthwhile in the life of a business that is collaboration; the supply planning collaboration, Materials planning collaboration, and advanced PO collaboration (Albrecht 2010).

In the collaborative relationship, several issues of interest to the companies have been expressed in the pursuit of the collaborative aspect with the various partners concerned. Improvement of the supply chain management can be improved by liaising with the supplier prior to purchase. It has been proven that this kind of collaboration with the suppliers is a recipe for taking the supply chain of a business to a higher level- it makes response be swift while at the same time significantly reducing the lead times (Ayers 2006).

In the collaborative chain management, companies have also devised several method of creating binding linkages with the suppliers by directly assisting the suppliers with technical knowhow and awards so that they can use those practice that can improve their level of production. In this sense, the companies have also entered into long-time agreement with the suppliers so that they cushion themselves from the shock of demand and supplies are presented in nature of business. In this case, we find multinational companies like McDonald collaborating with farmers in countries where they do business for the sole purpose of ensuring that the supply chain is efficient and stable (Ayers 2006).

The collaborative approach in the supply chain management comes with a number of benefits both to the company and to the suppliers. It is a common knowledge that in an economy where there is a tight competition, means of securing unrivalled account is impossible. The result of this situation is that the suppliers are programmed to specific customers and this is also pegged on the value that their target customers give visa vis their competitors. In this case, it should be noted that price alone in the end is not the only competitive criteria and in a collaborative case, there are more things that comes into play than just the price alone (Bevilacqua, Maurizio, and Ciarapica 2012).

A case in point is; you engage in a business with a customer who will drop you after a season for another because of the price factor, you are likely to face many dynamics to regain stability of the customers base. This informs on the benefits one can accrue by entering into collaboration, it ensures that the supply chain management becomes predictable. With little regard to the price alone, value and delivery consistency is also achieved in the latter (McClellan 2007). In addition, it should be noted that collaboration in the supply chain management has a positive effect on the reduction of cost both to the supplier and to the customer.

It will be acknowledged that in the initial year assuming that the a company wants to enter into agreement with a supplier, there are many legalities and procedure that has to be followed and met, all these are added cost to the business and to the suppliers. During the beginning of the relationship, much inefficiency comes with first time engagement