Originally published at: https://blog.12min.com/the-supply-based-advantage-summary/
How to Link Suppliers to Your Organization's Corporate StrategyWe bet that you don’t even pay so much attention to suppliers – a mistake that fortunately can be corrected. Building relationships with them is the key element to prosperous future.
We summarize the main discoveries found in “The Supply-Based Advantage” for you to gain insights on supply.
Who Should Read “The Supply-Based Advantage”? And Why?It’s best to start with a clearly-defined vision, or what you intend to do. Nowadays, it’s virtually impossible to succeed while being half-interested about the topic. Ignite that fire, and learn the ropes of “The Supply-Based Advantage.”
As such, we warmly prescribe this set of stories to people involved in businesses, which intend to learn and grow.
About Stephen C. RogersCurrently, Stephen C. Rogers serves as a Senior Consultant in a consulting company, called - Cincinnati Consulting Consortium. As a supply-management expert, he offers his expertise to numerous enterprises worldwide in the realm of a supply chain.
"The Supply-Based Advantage Summary"After working for three full decades at Procter & Gamble, Stephen C. Rogers decided to share some of the stories that marked his amazing career. Everything he learned, is briefly sum up in order for the readers to get the big picture of suppliers. However, this fascinating journey mixed with risk and challenges started way earlier.
Before you emphasize the value of maximizing supplier relationships, you need to dive into the background processes of supply chain management.
Let’s start slowly: Shall we?
Obviously, many companies refuse to provide guidance to individuals who are eager to get the hang of “Supply.” In other words, one must be prepared to plunge into the heat of battle, absent instructions. In reality, mentorship is the critical element of growth, but time after time we’ve been proven wrong by numerous self-taught masters.
Here’s an interesting idea:
Rogers brightens up the place with personal adventures, various case studies and extensive research. Generally speaking, the supply-based advantage is hard to achieve, but highly helpful once you’ve done it. To make a long story short, he describes the supply chain strategies which brought him success and gradually lifted the company as well.
With this in mind, we set foot in a desert – meaning that in front you there is nothing other than sand, but if you know where to look, you’ll probably find a source of water supply. This metaphor illustrates the difference between an average “complainer” and “problem-solver.”
For instance, Rogers’s efforts to display these amazing supply-chain strategies is based on one very simple conviction. For example, if you are importing coffee into Europe, the first thing you should do is pour yourself one, get relaxed.
In fact, to get your business flowing, you don’t need to play on the safe side, but on the fun side. A theory referring to maximizing your suppliers’ contributions, and long-lasting relationships forged in the importance of profits, and trust.
Supply-chain management is aware of how crucial is the process of maintaining a competitive edge. From a different standpoint, why should we be concentered about this? Beware of decentralization, because at the end, all operations matter equally in pursuing that vital advantage.
If you are set out to deliver value to the end customers, you must rebuild that broken trust and revive the supply-based relationships.
Do you wish to enhance professionally?
Adopt the same attitude, and enforce enthusiasm in your organization. Flexibility is the tool for positioning yourself better than the competition. Regardless of how you plan to make your presence felt on the market, from customer service, branding, shopper experience, marketing perfection, it all comes down to – your positioning.
Supply chains offer incomparable methods for reaching that stage and guides you to step aside from the idea to rely on quality alone. Your suppliers are gold miners; your suppliers are profit-markets! Why would someone want to jeopardize that kind of relationships? – Out of ignorance, there is no other answer.
The bottom line is:
Many companies lack the expertise to foresee profitable relationships and thereby think of supply-based connections as matters of lesser importance. In general, they are viewed as expenses in order to reduce short-term costs, without realizing that this kind of attitude complicates long-term productive links.
Stay with us for the conclusion:
Not every corporation reaches its maximum, not every startup overcomes the tough years, but all of them are driven by the same notion. Remember, putting words into action, requires planning, cooperation, and most importantly trust.
Key Lessons from “The Supply-Based Advantage”1. New times require new measures 2. The ultimate goal 3. Give respect to earn respect
New times require new measuresToday’s companies are still stuck in the same old-school perspective, that purchasing is an unavoidable, mundane, monotonous back-office function. Nonetheless, stats show that more than 70% of any firm’s tangible products, services or other commodities derive from outside suppliers or their partners.
The ultimate goalOnce again, we come across the same burden which drives the corporations crazy. They don’t know how to establish or build the foundation for long-lasting, profitable relationship. Stephen C. Rogers advises giving something valuable in exchange for their material or capital contributions. Regardless of who is pulling the strings, every member of the organization that maintaining a competitive edge is an ongoing, criss-cross process.
Give respect to earn respectSaving money at the expense of achieving sustainable relationships is not a good deal. This bargain contradicts any company’s vision – to expand, improve, and thereby gain an advantage. As much you expect from your suppliers to distribute quality materials to your doorsteps, they share the concern and demand to be treated with respect, in return
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“The Supply-Based Advantage” Quotes[bctt tweet="A company that stands still in a competitive marketplace is probably moving backward." username="getnuggetapp"]
[bctt tweet=“Virtually every supply management article or book urges creation of a business case for use in selling strategic sourcing to senior management.” username=“getnuggetapp”]
[bctt tweet=“Unbridled power at any position in the supply chain can change the dynamics throughout the chain.” username=“getnuggetapp”]
[bctt tweet=“Sometimes, executives simply don’t ‘get it’ when dealing with suppliers.” username=“getnuggetapp”]
[bctt tweet=“Supply management is a family of complex processes that includes an amazing number of tools and skills in order to span the range necessary to manage the full supply base.” username=“getnuggetapp”]