Supply chain collaboration
Enhance shareholder value by managing supply chain collaboration strategically
Collaboration in many sectors of manufacturing is widespread and increasing, and the need to deliver increasing value is driving the desire to collaborate. However, in nearly all cases, collaboration is not delivering the full mutual benefits.
We have defined collaboration as working more closely with your clients, suppliers and partners across the value chain for mutual benefit. Collaboration involves integrating business processes, IT systems and relationship structures within and beyond firms' boundaries.
PA Consulting Group has undertaken research to find out why this is the case. The analysis suggests that there are five reasons why collaboration is not delivering the desired business benefits and increasing shareholder value:
- there is a lack of shared vision of what collaboration will deliver
- trust and engagement are key to success but are often not present
- end-to-end processes are not working across organisational boundaries
- companies are not using technology effectively to create value
- collaborative ventures are not being measured and managed for success.
Managing collaboration strategically
PA has developed a pragmatic approach which can quickly improve the value gained from collaboration. It is based on three stages:
- assessing your organisation’s relationship landscape
- reviewing the level of collaboration for each partnership using PA'smaturity model
- identifying initiatives to improve the value created by your collaboration.
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