Supply chain Relationships

Effective relationships between suppliers and customers have become diferentiation of high performing supply chain.
1. Outsorcer and Outsorcee relationship developments
  1. Master-servant-stage: outsourcer consults with the outsourcee on a regular basis
    1. peer-to-peer relationship stage: "win-win" situations for both the parties.
      1. Competitive stage: outsource company takes the lead role and start to compete with the outsourcing company
Growth International Trade
1. In manufacturing sector interrational of production are increasingly being estabilished
2. Global competition, competitor, partner and customers around the world, global sourcing and presence, global access to knowledge and new technologies.
3. Unprecedented increase in companies outsorcing and offshoring because of rates of pay in different places
Outsorcing "Third parties"
1. Outsource for cost reasons, increased flexibility, core competences, rapid advances in technology
2. Can be defined as the transfer of third party og the management and delivery of a process previously performed by the company itself.
  1. https://www.youtube.com/watch?v=7qeehDLYa8g
3. SLA (Service level agreement) contarctual agreement between customer and supplier
Offshoring
1. Is the transfer os specific processes to lower cost locations in other countries.
  1. https://www.youtube.com/watch?v=KpF0uwHFO_0
2. Manufacturing and services processes can be offshored
3. Lower cost in offshored regions, lower stringent regulatory controls in offshore regions, deregulation of trade facilities offshoring, clusters of specific activities emerging in certain regions
4. Nearshoring. Moving their offshored activities to countries closer to their home market
5. Backshoring. Abandon offshoring and move the activities back to the original homemarket.
Failures in outsourcing
1. / business process outsourcing (BPO) contracts signed today will need to be renegotiated
2. 50% of outsourcing relationships worldwide fail within five years
3. Late delivery one of the most common causes of failure in outsourcing, consistency of quaity, cost and service and confidentionality.
Evaluating and selecting outsources
1. Order qualifiers are those ctriteria and/or performance expectations thata a company must meet for customer to even consider as a possible supplier
  1. Corporate Social responsability (CSR). Low "ethical" acompany`s activities are: Delivery reliability forms and order-losing qualifiers
2. ISO 9000 (In Asia to be considered or a potential supplier). Quality certid¡fications, delivering lead time, performance track record and price cost reduction.
Supply chain integration
1. Is a term that embodies various communications channels and linkages within a supply network
  1. Internal integration: cross-functional integration within a selected organisation
    1. Backward integration: integration with selected first-tier and increasingly second-tier suppliers
      1. Forward integration: with selected first-tier customer or service provided
        Forward and backward integration with suppliers and customers
2. Supply chain collaboration principles
  1. Is product and process oriented, collaboration is focused on relationships.
    1. Information shoring can be achieved by implementing integrated processes and applications
  2. Supply chain collaboration methods
    1. Global supply network complexity is a major constant of both integration and collaboration
    2. If small-scale supplier with limited resources are continually competing for business

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Supply chain Relationships

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	Created by JORGE SERRANO almost 10 years ago