Email
sinha.rk.dr@gmail.com
Smooth flow in Supply Chain operations requires trust amongst partners.
Any company’s extended supply chain is operated by multiple partners. It is impractical for any one entity to direct, control and monitor all the partners. While the objectives and logic for each step need to be clearly defined and agreed upon by the partners, trust plays an important role in its execution.
The first level of trust is expecting all partners to stick to the logic in daily execution. This should happen in an auto-pilot mode, without monitoring. In reality, it happens only if the objectives and logic are well aligned.
The second level of trust relates to exceptions. Since standard logic doesn’t cover all situations, there are exceptions from time to time. In such cases, relevant partner must execute basis global optimisation for the extended supply chain, keeping his own internal objectives at bay… Global system optimisation instead of local optimisation. This level of trust is missing in many cases, where individual partners often tend to increase their own revenue and profits instead of improving customer level availability and freshness.