Narayan Laksham, Ultriva’s Founder and CEO, recently discussed the importance of collaborative relationships in the supply chain. Laksham noted in a blog posted on the company’s website, “I believe that collaborative relationships are critical because for several decades the Customer–Supplier relationship largely followed the path of a boss–subordinate model. Customers continued to dictate and their suppliers responded to the best of their abilities. In certain industries this relationship became quite tenuous as customer continued to demand price reductions and superior service without offering anything in return. It has often resulted in a drop in quality or suppliers going out of business. In general there was a clear lack of trust. The fact that unrealistic forecasts coupled with MRP exceptions of constant expedite and deferring of orders made the situation worse. It was clear that unless the trust in the supply chain was re-established the relationship would end up deteriorating further.”
Because this sub-tier supplier concentration is occurring deeper into global supply chains, many large organizations are not aware of the risks involved. The Ultriva team concurs that most are not adequately prepared to mitigate those risks.
A key mechanism to building trust guided by Ultriva, has been to move away from dictating and towards collaborating. Sharing of relevant information, building common metrics, providing real time visibility and working towards continues improvement are the corner stones of collaboration.
To read the entire blog click to link: http://web.ultriva.com/