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Trust and Customer Service Performance 312 wk 6 forum - Assignment Example

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Sharing knowledge and information is significant when functioning cooperatively to create novel products and services and enhance the physical supply chain flow. The distinct interactions between sellers and buyers in supply chain management result to trust. Trust is defined as…
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Trust and Service Performance Sharing knowledge and information is significant when functioning cooperatively to create novel products and services and enhance the physical supply chain flow. The distinct interactions between sellers and buyers in supply chain management result to trust. Trust is defined as the confidence that the individual has in the hands of another while reliably trusting that the other party will not act exploitatively and opportunistically to their disadvantage. Reliability and character-based trust offer the best ways of understanding trust in supply chain associations.
Reliability-based trust is based in the company’s discernments of a prospective partner’s real behavior and operating performance. It engrosses a notion that a partner is disposed to execute and capable of acting as promised. Efforts to create collaborative associations fail when supply chain partners cannot rely on their performance as promised. In simple terms, an organization that is alleged to be unable to act as guaranteed will be perceived as unreliable and thus not fit for the trust in the association.
On the other hand, character-based trust is grounded on a company’s culture, philosophy and leadership. Principally, it originates from discernments that supply chain partners are interested in each other’s wellbeing and not work without putting into account the effect of their actions on the other partner. Character-based trust is critical in collaborative relationships because the partners in the relationship act in confidence that the other party will deliver up to anticipations because of the developed character of the association. In this case, the partners in a relationship do not feel susceptible to the deeds of one another. Needless to say, the partners believe that each will safeguard the other’s interest. For example, a manufacturer who shares ideas on new product launches with a merchant trusts that he or she will not give the idea to a competitor.
Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2013). Supply Chain Logistics Management (4th ed.). McGraw-Hill.
Cuganesan, S., Briers, M., & Chua, W. F. (1999). Controls in strategic supplier relationships. Sydney: University New South Wales Press.
Moser, R. (2006). Strategic purchasing and supply management: A strategy-based selection of suppliers. Wiesbaden: Dt. Univ.-Verl. Read More
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