Three Levels of Collaborative Supply Chain Management

You want to be able to get the most out of your supply chain which highlights the importance of collaborative supply chain management. Effectively collaborating allows the parties involved to share relevant information especially when it is done in real time. This may seem a bit difficult and complicated, but when it is broken down into these three levels of collaboration, it makes sense and is achievable.

Transaction Integration Collaborations

This first level of collaborative supply chain management involves computerizing all your general business transactions and activities. There are numerous tools to help accomplish this goal including proprietary software, electronic data interchange, and the internet. Members of the supply team can exchange data at this level including:

  • Purchase, sales, and work orders
  • Point-of-sale details
  • Credit or debit information
  • Invoicing forms
  • Payments (incoming and outgoing)

Information Sharing Collaboration

At the secondary level of collaborative chain management, team members can use online resources including proprietary software and EDI tools to share information such as:

  • Production procedures
  • Transportation plans
  • Bills for materials
  • Orders & product details
  • Inventory and product availability
  • Prices
  • Terms of the contract
  • Allocations

Strategic Collaborations

Strategic collaboration is the final level. This level of collaboration focuses on planning and redesigning various processes. You will typically share risks and rewards and make joint decisions on numerous matters such as:

  • Improving forecast accuracy
  • Increasing overall profitability
  • Improving relationships across the supply chain
  • Various Pricing Plans
  • Resolving any critical events along the supply chain
  • Improving the sales process
  • Managing procurement and fulfillment issues

Maintaining communication along a supply chain is crucial to each party’s success. Being able to communicate via the internet and computer technology is key to ensuring the process moves along smoothly with no glitches in the successful delivery of the final product.

Need help fine-tuning your collaborative supply chain management so you can get the most results? Please visit the Demand Solutions website to learn more about effective strategies.

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