SUPPLIER RELATIONSHIP MANAGEMENT:

manage a supply managers to actively

are demanding chain. Second, customers

products and lower prices and better

customers’ services. To meet their

optimising the entire demands, firms are

chain management supply chain. Supply

in a supply chain to allows all the firms

own objectives. look beyond their

the final The objective of maximising

find new

Along the way, they

costs, better opportunities to reduce

new and utilise assets, and build

while delighting profitable revenues,

The effort works, targeted customers.

encountered but there are complications

large gaps have along the way, and

industries that were appeared between

chain and those early to embrace supply

the inherent still beginning to implement concepts. leading

Across industries, the

supply chain business firms realise

supply chain optimisation, advanced

e-commerce, management, logistics,

systems, and other digital communication

chain are essential modern tools of supply

the next level of factors in getting to

success, a failure success. For each notable

has its interest is recorded and a firm dampened.

driving supply There are two forces

First, is new chain management.

that allows communications technology

supply chain will not not adequate, the

enough to increase improve its response

Without an profits for its members.

the efforts to manage increase in profits,

be reduced, because the supply chain will

for actively there will be no reward managing it. requires Supply chain management

level of cooperation an unprecedented

of the supply between members

open sharing of chain. It requires an

all members know information so that

their full share of they are receiving

of the firms in the profits. Since many

not have a history the supply chain do

the trust of cooperation, achieving

chain management necessary for supply

task. is a time-intensive

the firms can Another way that

ensuring that their increase profit is by

correspond to the marketing strategies

that is, from supply chain‘s capabilities,

supply chain they their position in their

satisfaction. The pay-off customer’s

that can supply chain members for

profits for their do this is increased

largest barrier to shareholders. The

chain is managing a supply successfully to

human element. Failure perhaps the

issues of trust and correctly manage the

abort any attempt to communication will

chain. manage the supply

of trust and

When there is a lack

supply chain’s communication, the

succumb to greed members will soon

members of suspicion that other or

profiting at their the supply chain are

is the communication expense. When

techniques supply chain management

But there has been to increase revenue.

price of the item to little effect on the

may argue that this the customer. Some

total amount of occurred because the

chain was not inventory in the supply

inventory may have reduced. Instead, the

the second and third been transferred to

eliminated from the tier suppliers but not supply chain.

the supply chain Therefore, a firm in

to form must initiate the attempt

manage the partnership and actively

a firm that has a large supply chain. Often will

power in the chain amount of market

of the supply chain. become the leader

justify the effort to

This firm needs to

chain by explaining manage the supply

accrue to each the benefits that will

chain and to itself. member in the supply

chain leader must

To do this, the supply

in the improvements show the partners

arise and the supply chain will

to a gain for how they will lead everyone.

chain is Managing a supply

difficult more complex and

individual than managing an

of firm. But the principles

to integrate management used

functions a firm own internal

the also apply to managing entire supply chain.

is While the supply chain

demand, driven by customer

its own it is constrained by

One internal resources. difference is that these

be owned resources may not

is possible by the same firm. It

entire for the output of an

limited supply chain to be

not because one firm does

surging have capacity to meet

for every firm demand. It is also possible

to be operating at in the supply chain

there is not a low utilisation because

the market for the enough demand in

supply chain. products from the

what the customer can actually provide

able to gain desires. They are also

the supply chain’s profit by improving

the market demands capabilities to match

of inventory. Firms with decreased level

because they have are able to do this

to forecast needs additional information

is reduced, their and as the lead time

also reduced. This need to forecast is

reduces the reduced need to forecast

stocks for the need to carry inventory just-in-case scenario.

and large Many major retailers

reduced their manufacturers have

their use of operating costs through

a trainer consultant Dr G. Vizayer Raj is

at the and director of programmes

Development Asian Management

reach him at Academy. You can vizayer@gmail.com