SUPPLY CHAIN RELATIONSHIPS

1
SUPPLY CHAIN RELATIONSHIPS
2
Lammings Four Phase Model

• Traditional Model
• Stress Model
• Resolved Model
• Partnership Model

3
Lammings Four Phase Model

• It Appears That the Traditional Model Was a
  Feature of Mass Production
• The Stress Model Was Caused by Mass Productions
  Failure to Provide Solutions to the Problems
  Caused by the Major Downturn in the Market
  Coupled With the Increased Threats of
  International Competition

4
Lammings Four Phase Model

• The Resolved Model Was the the Necessary,
  Expedient, Antidote to the Problems Caused by the
  Stress Model and Laid the Foundations for the
  Full Transition to the
• Partnership Model - a Me Too Strategic
  Emulation of the Successful Japanese Companies

5
Traditional (Adversarial) Model

• Positional Power
• Decision Making Criteria
• Opportunistic Behaviour
• Porters Competitive Rivalry Model
• Porters Purchasing Strategy
• Trust

6
Stress Model of Procurement

• Catalysts
• Open Book Negotiation
• Distribution of Risk
• Technological Developments
• Quality
• Reduction in Supply Base
• Conceptual and Empirical Developments

7
Resolved Model

• Resolution of the Stress
• Statistical Process Control
• Improving Efficiency Cost Control
• JIT, TQM, EI WCM
• Trust
• Porter
• Carlisle Parker
• Kanter

8
Partnership Model

• Collaboration
• SCMG Model
• RAP-3 Model
• Keiretsu
• Value Chain
• Long Term Relationships
• Trust

9
Partnership Model

• Nature of Competition
• Cost Transparency
• Target Cost Pricing
• Value Analysis
• Communication

10
Development of Conceptual Model

• Relationships Between Firms As Human
  Inter-personal Relationships
• Trust, Mutual Understanding Cooperation
• Economic Power Exchanges
• Brought About by Differing Firm Sizes
• WHY THEN CAN SMALL COMPANIES HOLD LARGE COMPANIES
  TO RANSOM!!

11
Key Factors That Influence Inter-Firm
Relationships

• Cant Classify Relationships As a Whole
• Not Trust but Risk Assessment
• Mutual Co-operation Is Developed Where There Is
  Mutual Dependency
• Unless the Is Competitive Advantage There Will Be
  No Participation
• The Collaboration Must Be Competitive
• THE RATIONAL APPROACH

12
Relationship Classification
13
Relationship Life Cycle
14
Dependency Certainty Model
ONE-SIDED DEPENDENCY
MUTUAL DEPENDENCY
DEPENDENT
A
D STRATEGIC COLLABORATION
Level of Dependency
C TACTICAL COLLABORATION
B TRADITIONAL/ ADVERSARIAL
INDEPENDENT
CERTAIN
UNCERTAIN
Level of Certainty
15
Inter-Organisational Dependencies

• Historic
• Economic
• Technological
• Political

16
Inter-Organisational Certainties

• Contractual
• Competence
• Goodwill
• Political