Managemnt of SP_Chapter 3.pptx_Chapter 3

Chapter 3: HC SP

1. Management of SP Chapter three

2. Coordination and collaboration in in the management of supply planning Activity 3.1. Individual reflection Instruction: Give your opinion on the following question. What do you think is/are the purpose of coordination and collaboration in the management of supply planning? With whom should you be collaborating to carryout Supply planning? Who is responsible to establish collaboration with stakeholders Time allowed: 5 minutes

3. Coordination and collaboration in in the management of supply planning Internal coordination or collaboration It is all about establishing a relationship with in an organization’s operational and managerial units. These relationships are established to coordinate the activities of an organization . Efficient internal collaboration improves the ability to respond to information produced beyond the firm. Internal coordination has two groups: vertical and horizontal coordination. Vertical  – it is an internal coordination in which a superior authority coordinates work with subordinates. Horizontal – In horizontal coordination, employees of the same status establish a relationship between them for better performance. It is the coordination between department heads, or supervisors, or co-workers to create a synchronization with in a team and standardization of work done.

4. Coordination and collaboration in in the management of supply planning External Coordination and collaboration is all about establishing a relationship between the employees of an   organization and people outside it. These relationships are established with a view to having a better understanding of outsiders like  market  agencies, public, competitors, customers,  government agencies , financial institutions, etc. External collaboration helps coordinate tasks and solve problems, improve product quality, reduce the lead time, enhance flexibility and ensure delivery.

5. Coordination and collaboration in in the management of supply planning Through internal and external collaboration, supply chain members are: more capable of understanding each other, realize customer value, Reduce uncertainties , and achieving collaborative satisfaction. An organization have to achieve internal collaboration at first in order to enhance external collaboration by communicating with customers and suppliers, organizations learn collaborative skills by which they are able to further promote internal collaboration.

6. Determinants of coordination and collaboration a. Trust It is interpreted as the degree of partners’ confidence in each other for accomplishing behaviors and achieving benefits as the agreements. In supply chain coordination, partners need to trust each other for exchanging internal information, such as purchase lead time, internal costs or inventory level. Both coordination actors are confident that exchanging information leads to better cooperation rather than losing confidential data In practice, Trust has a strong influence in the cooperation processes since it allows each partner to share information and to have a positive view on the partner’s behave.

7. Determinants of coordination and collaboration b. Common Understanding It is a kind of agreed interpretation between customers and sub-contractors, which is required in several issues in which misunderstanding often occur, like uncertainty of forecasts, urgency, standards of quality and etc. c. Willing to Cooperate. As an individual entity that pursues benefits, enterprise, in certain case, chooses to concentrate on its own interests without the considerations of the overall chain. These self-protective activates of the customer possibly reduce the willing of cooperate of the sub-contractor. d. Balance of Power is a very important condition of cooperation in a supply chain, and may result from various issues: size of the partner, specialty (critical for the partner or not), power in the whole supplier chain, competence, access to markets etc.

8. Establishing a successful collaboration

9. The benefits of coordination and collaboration The benefits of coordination and collaboration are listed below. Improved processes to review and track potential stock issues and outcomes. Coordinated management of shipment allocation with suppliers and prioritization for products with short-term supply constraints Involved stakeholders will coordinate supply planning to reduce supply related risks Facilitate supply chain system strengthening Links procurers, donors, and suppliers to prevent stock imbalances and optimize use of resources Provides a discussion platform for donors, procurers, and partners to collaboratively solve problems around supply-related issues that affect the availability of products ;

10. The benefits of coordination and collaboration Experts form involved stakeholders will involve in data analysis and provide recommendations to optimize use of available resources Computation of procurement funding gaps and forward possible resource mobilization solutions Place valid and reliable methodology for regular stock levels monitoring and anticipating product needs. Provides with improvised work environments through automating tedious processes, resulting in greater efficiencies and optimized impact. Collaborative review of supply plans to evaluate needs against requests, orders, and proactively flag funding gaps; Identify possible dysfunctions, diagnosing reasons and tracing the possible solutions