'There is nothing so useless as doing efficiently
that which should not be done at all'.
Compete with Supply Chain WIN-WIN-WIN Syndicate
by Rich Deegan & Martin Nazareth
WIN-WIN Strategy has been used to describe customer-supplier relationships for several years
with the assumption that both achieve their desired outcome. In reality, there may be two basic flaws in this supposition.
A true WIN-WIN relationship is essential for a long-term relationship between
customers and suppliers with the foundation of trust, mutual respect, and commitment. In reality, many negotiations take place
with the stronger and better positioned party taking advantage of the weaker or distressed party. The fact that both parties
have gotten into an agreement indicates that each of them expects to meet their desired outcome. However, this is a WIN-LOSE
relationship as one is trying to win disproportionately in relation to the other. This relationship is not a long-term winning
partnership as the two parties compete on terms that suit them at the cost of the other.
There need to be WIN-WIN relationships across the supply chain, between three or four parties — the organization,
the extended enterprise (customer & supplier) and the people within the organizations. That is a WIN-WIN-WIN relationship.
When one of these parties is not considered in the equation, the relationship is weak. While individuals are sometimes included,
it is typically only the leadership and the intent of developing people is often neglected. In the Toyota house of Lean, the
bottom-most foundation layer is “People” and Toyota is one organization that does this part well. A supply chain
is only as strong as its foundation.
Despite learning the Toyota approach for over twenty
years, most supply chains don’t practice the WIN-WIN-WIN strategy.
An indicator of these flawed relationships
is a high degree of instability due to:
Strategy to Compete as a Syndicate
- Aligned values, ethics and people-based syndicate
- Aligned goals and metrics
- PDCA so that the syndicate
WINs versus its competition
Supply Chain Excellence for Leaders Coming to Pennsylvania
Over 50% of production costs are linked to supply chain (SC). SC is a crucial factor
in the profitability and success of any organization.
The Supply Chain Excellence for Leaders seminar was launched May 11th to excellent
reviews. This seminar focuses on practical applications of supply chain (SC) strategy, design, and risk management.
Two key takeaways from the participants was that the SC strategy….
integrate and test all changes with its goals, and
- Must address initial end-to-end product
design to lock the majority of the total delivered costs up front.
Participants expressed that the practical approach, exercises, and application to their own organizations was most
Based on the enthusiastic feedback and requests for further sessions, a Supply Chain Excellence
for Leaders seminar has been scheduled for September 13, 2016 (registration ends Aug 26), in the Philadelphia, Pennsylvania
area and another for October 18, 2016, as the first of four seminars for Leader Training Week in Houston, Texas.
OpEx Solutions is an organization that helps identify strategic
areas for improvement and provides effective high-value, low-cost solutions, training, and project management to drive significant
productivity improvement through the use of operational excellence tools and systems in most manufacturing and service industries.
With a variety of offerings to choose from, we're
confident of working with your organization to find and define your own way through:
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please feel free to contact us.
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