Analyze the Key Challenge of Collaboration Supply Chain for the Company

To improve the problem between collaboration of both company and create a value chain together. Introduction It is well known fact that Collaborations in supply chain are the key factor to be a successful in business. Moreover, the problem is in each company have their own culture business so, the structure of business is difference too. Furthermore, Companies around the globe are shifting to global value chains, extending work across time zones, languages, and cultural barriers. This geographic dispersion allows companies to source materials and manufacture products more cost-effectively.

But a reliance on a global supply chain also introduces new challenges – making it more difficult to connect with the right people, resolve concerns, and respond quickly to changes and unexpected events. (Building a Collaboration Architecture for a Global Supply Chain. (2017, August 09).

So, this analysis will find the key challenge for the collaboration to solve all the problem factor and study the risk of collaboration between both company. To sum up, the key challenge in this report is just one part of it but focusing on the main point that I think is the main key to develop the culture structure of both company to matching each other.

Collaboration Service is the main idea of this key because in each company have their own service style. For example, Company A use 3 Days to fix the problem when the customer need the maintenance after they have a notified. On the other hand, Company B using only 3 hours to fix it, so when they collaborate they will have a problem with this kind of case.

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Then the challenge of this task is to build a n application, sharing information, and have a backup plan for them to working together smoothly. Real Time Service Diagram The Figure above shown the connectivity of real time service by using the technology to update the situation while working. Real Time service in supply chain is very important to maintain the business work efficiency so, It not only the connecting each other but it including demand update, strategic workflow, improve the customer service, improve the quality of service, produce the better long process.

Demand updates : As I said that application or network can help the demand up to date, giving ability to make working plan smooth. Strategic workflows : Create a strategic workflow for both company can give benefit to both company that joining support demand on workflow to be on time. Improve the customer service : The real time supply chain is a tool for support customer service to update the status and can be a backup plan when it has a unpredictable case. Improve the quality : The inefficiencies information can solve the problem quickly and reduce the damage of product / service. Produce the better long process : Analysis the competitor model to improve the company system. Using the advantage of the company that collaborate to reduce the mistake, find the best solution to be a base of network that use in collaborate.

information is tool for innovative system that company who collaborate think about it. Let’s think about three thing of sharing information. Innovation : Sharing information to the partner will help the company study the new technology or technic of each side because each company have their own buyer and supplier. If both company brand storm and produce a new innovative for supply chain that give a competitive advantage too. Speed : Study lead time management of partner to improve both company working in the same structure then the problem while working will reduce. Profitable : After sharing the information, both of company should study the financial together to help the profit after they collaborate increase. So, that will be a good way to make them go in the win-win situation. Everyone will get the increasing profit and reduce the operation cost.

From this figure shown the systematic that both company sharing their information as you see the red zone that represent the intersect between each company and they can use this information to improve their company to build a new system to support supply chain.The figure above shown the concept of working organization while select partner and after select partner both of partner will need to create a structure operation model to use when they are working together. Unfortunately, Organization in collaboration are importance to the cooperation systems because the activity in which part are impact to all process. Create an organization structure will create a value of collaboration. For instance, if the company A have a strong leadership that can manage all employee and control the quality of product but this leader also has a weakness like… he doesn’t share any information to his subordinate and when he has a long holiday. If unpredictable case happened, people in the company cannot do anything accept calling him. In another case, if people in the company cannot called him, they need to wait until him called back or he come back after holiday and it will have a problem with lead-time, customer service, etc. On the other company B, this company sharing all information to everyone but they don’t have a leader to handover the employee that case to some delay of product. So when they collaborate ,it like a studying a weakness of organization and improve the corporate structure to working together.

Strategic Performance Setting the strategic performance to improve the relationship between partner and make a standard role for them. Using the formula to evaluate the quality performance not only financial but it including personal work, lead-time, customer service , etc. Figure 4 The Roles in performance management Source: https://wispapp.com/blog/2016/11/02/collaborative-performance-management-model/ This figure shown one example of the model of performance management that use to output evaluation and follow up the performance of the collaboration. First, Setting the goals of both company to decide to be a goals and then create a formula to leader of each company, leader of each company explain the goals to their employee to attempt them to have the same vision. Next, leader in both company should talking about the performance of their employee to improve the weakness, helping together to put the increase outcome. Moreover, feedback to their employee and try to evaluate again after comment( maybe, collect data every 2 months or after project finished to see the problem and find the solution to them.)

The operational performance is to reduce the operation cost such as choosing the right partner to optimize the retailer stock, processing to fulfillment stock when they have a huge volume. The real power of any performance-management system comes from this frequent, robust dialogue between partners, yet this is also the element most commonly ignored or underemphasized by collaborating companies.( Benavides, L., Eskinazis, V. D., & Swan, D.,Quarter ,2012).Furthermore, the company should joint the performance management to collect the data and analysis the overall. Transparency result of performance can make a valuable to partner to create a trust. For example, Company A have a low performance to manage the operation cost but they didn’t tell the truth to their partner, he hide the real information and when the outcome process show the result. Finally Company B also see the real information by the outcome, it will make a conflict to them . Successfully creating transparency and trust, however, can deliver remarkable value. One company in the financial services used just this approach to address persistent poor performance by its network of litigation service providers. It did this by first changing the way it interacted with vendors, simplifying lines of communication and establishing regular weekly calls with them.

Then it introduced a transparent vendor performance management system, tracking results and error rates, and discussing them with each vendor in monthly reviews. The company supported these efforts with changes in its own organization through the creation of dedicated teams for vendor performance management and collaboration. Better performance Source: https://www.strategyand.pwc.com/reports/overall-approach-change-management This figure shown the way to have a better performance, the collaboration is a big change of operation management because when two company joint together, they need to change the strategy/ operating model to matching with their partner for a good work. So it should has a clear strategy operation model will make a truth form the employee. On the other hand, if the company whom collaborate are a big company that harder than a small company joint the system because each company have their strong culture and mission. The management leader in each company need to share the information and make a better performance.

Client service is the main important point to evaluate the collaboration successful or not. Customer is the heart of the company, in collaboration client service have 3 main concept to help customer service of collaboration success. First concept that I will explain about is Fast-moving. Fast-moving in customer product is the hard of collaboration because the customer want to have a new technology to support their needs. When the company joint to work, they will get the advantage to share the research, develop the new technology, study each model business to win the competitive get the competitive advantage. For example, if company A don’t have a partner, they need to spend 100% to develop new technology or product to produce new product but if they have a partner both of them sharing the information and then they share a cost of research or develop that will be a benefit for the collaboration. However, the speed or ability of each company are not equal , leader of each company need to working closely to put the employee adapt to the new technology.

Lead time management is one issue of the inventory and company. This part always has a problem with the collaboration company because if they have a difference lead time to deliver the products, the impact is reflecting to the customer. Both of them got the comment from the customer, the relationship or trust of customer also reduce too. At the figure below show some structure model of Inventory level for manage lead-time. Figure 6 Structure model of Inventory level for manage lead-time I research on this structure and found some structure to improve this key challenge. (Inventory Management: Success Through Collaboration. ,2015, July 23). Safety stock : Safety stock is to setting the supply chain quality of both company to balance the demand and supply. Manage the stock to make sure that if one company has a unpredictable , the other company can support. It will make a better quality to the customer than the single company. Setting the policy : the policy of the corporation will base on the requirement and agreement of both company to support the evaluate of lead time performance. Balance the right cost of operation and inventory.

Reduce lead-time life cycle : Reduce lead time can manage the safety stock, calculate the inventory curve to maintain the quality of customer. Reduce lead –time life cycle can also reduce the cost and make more profits to the company. The advantage of read-time management is reflecting to all part in the company. The inventory manager can use this method to manage the collaboration system to drive the collaborate effective. Cost Saving (Competitive Advantage) It is well known that cost id the key point for investment or collaboration, before the company decided to collaborate, they also study the company that they will collaborate before. To observe the process of supply chain, operation, performance, financial statement, etc. For instance, Company A provide day by day to deliver when the customer or retailer order stock but the cost of deliver is double of the normal rate. On the other hand, Company B provide three days to deliver when the customer order but the rate of deliver cheaper more than half of Company A. So, when they collaborate, both company need to find the middle way to improve the quality of deliver and reduce the cost of deliver to get more profit and service the customer on time to create the competitor advantage.

Moreover, Sale and operation planning are the second one to reduce the cost, find the solution between both company to fix it. Many company fall with the cost control because it hard to manage the difference business culture to balance the cost. This key challenge is to manage the top-down and down-top management to improve a profit and reduce the cost in each department by helping each other to sharing the operation cost. The new platform will create an efficiency to the customer, increasing the customer service. To keep the feedback from the customer, after the collaborate to improve the comment and create new technology to be on trend. Conclusion This key challenge of collaboration supply chain for the company is very important for both company to evaluate the result and analysis the competitive before collaborating. Solving the problem that will happen when they collaborate. Next, in each part that I focus on is the main key thing in the business to support they need.

Furthermore, two key challenge that I really concern about in this report is operation performance and lead time because many company fall because they can’t manage their partner to have the same requirement as they want. In each company have they own structure model to following and when they collaborate, it also effects to the reorganization structure to drive they go to the same strategy. Moreover, the standard of every company is difference too. When they set the new standard, it always reflects to the employee spend time to adaption. In some case many employees are resign because of the new organization structure when they collaborate and it will the case of lack of people in position. Sometimes, the company has to replace people with the discontinuity of work, the problem is not smooth in managing in the job. So, the changes of the collaboration has been a huge with the company.