Quản trị kinh doanh - Chapter 11: Supply partnerships and supply chain power

1Chapter 11:Supply Partnerships andSupply Chain PowerPurchasing and Supply Chain Management, 3rd edition, Copyright 2013, All rights reservedThe Win-Win Partnership DyadBuyer and supplier share goals and risks through:Joint planning and controlA supply chain with increased information flow and enhanced loyaltyThe result for both firms: Decreased uncertaintyGreater control of costsCycle times, inventoryQuality, customer satisfaction2PartnershipDefinition:A tailored business relationship for achieving a competitive advantage based on: Mutual trustOpennessShared riskShared reward Strategic partnerships receive benefits of joint ventures and vertical integration without the ownership commitment3Benefits and Risks of Supplier PartnershipsBenefits:Higher quality, and transaction costsIncreased market stabilitySetup time reduction, improved process-oriented layoutIncreased communication and goal congruenceRisks:Partner may not meet expectationsLoss of partnership controlComplacencyOver-specialization4Large vs. Small Suppler BasesBenefits of a large competitive supplier base:Higher manufacturer bargaining powerLower costs, higher quality, reasonable delivery times, and special exigenciesShelters against supply interruptions Benefits of a smaller supplier base:Less adversarial attitudesLower switching costsDecreased shipping errorsQuantity and relationship-based discountsDecreased cost of quality5Power of a Supply Chain MemberDefinition:The ability of one channel member (the source) to influence the actions and intentions of another supply chain member (the target)Characteristics:A composite relationship–oriented variableExtremely complex in natureAffects both the target and the source Key factor in a supplier–buyer alliance6Types of PowerMediated power sources Based on the source’s intention to bring about some action Includes reward, coercive, and legal legitimate powerRepresents the competitive, negative uses of power Traditionally preferred by organizations7Types of Power (cont.)Non-mediated power sources Occur as a natural part of business transactions and do not necessitate intention from the sourceThe source may not even be awareIncludes expert, referent, and traditional legitimate powerRepresents a more relational and positive use of power 8Critical Relationship Factors DependenceCommitmentTrustComplianceCooperationConflictSatisfactionPerformanceProfitability9Power, Cooperation, and ComplianceDefinitions:ComplianceAction without inherent desireCooperationAction with implied internal agreementPower attempts to force a target to comply with the source’s desires.Mediated or coercive power: ComplianceNon-mediated power: Compliance and CooperationA true supply chain partnership requires cooperation rather than compliance10Power and ConflictConflictWhen one supply chain member hinders goal attainment and performance of another Competitive power sourcesIncrease conflictPositive use of power Can reduce conflict11Power and SatisfactionSatisfaction The extent of contentment with the relationshipOverriding factor in determining the future of a supply chain partnershipDrivers of satisfaction Planning, mutuality, interdependence, and operational information exchangeWithout satisfaction, trust and commitment cannot exist.12Power, Performance, and ProfitabilityPerformance The ability to execute intentions and goalsMediated power Could reduce performance of the targetNon-mediated power Improve the target’s opinion of the source’s performance13Questions?14