Why Relationships are Key to Successful Supply Chains

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Successful Supply Chains

Successful Supply Chains- In a world of ever-changing tariffs and evolving technology, optimizing your supply chain is no longer a simple, finite task — but it’s worth the extra effort. 79% of companies with high-performing supply chains achieve higher than average revenue growth within their industries, compared to only 8% of businesses with less evolved supply chains, according to a 2014 Deloitte survey.

Unfortunately, only 50% of business leaders think that supply chain is a separate factor to the rest of their business strategy — and that could be costing them.

It appears that supply chain optimization has been pushed to the back burner for many businesses. It’s understandable, considering the constant fluctuation in the dynamics of supply chains can make it difficult for even the key players to keep up, but it’s a big mistake.

To help your business better prepare to handle these supply chain challenges, Tony Uphoff recently sat down with Robert Handfield, distinguished professor of supply chain management at North Carolina State’s Poole College of Management and the founder and executive director of the Supply Chain Resource Cooperative (SCRC), on the Thomas Industry Update Podcast.

The SCRC is an industry-university partnership dedicated to advancing supply chain management by connecting Fortune 500 businesses with future supply chain managers for a hands-on learning experience.

According to Handfield’s 30 years of research in the world of supply chain, the key to management “is actually about managing inter-organizational relationships and often involves multiple enterprises.”

Handfield’s Flows of Supply Chain Management

Contrary to what is typically taught in supply chain management, Handfield has a slightly different take on the three flows of supply chain. While professionals are usually taught that these three flows include materials/products, information, and finances, Handfield notes one more very significant flow in his co-written book, Introduction to Supply Chain Management: relationships.

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Article Credit: Thomas Net