Collaboration To Improve Customer Service And Reduce Costs

Companies can gain a significant competitive edge over their opposition via Supply Chain collaboration with key customers, suppliers and service providers.

- Ray Strauss

Typically collaboration can result in improved service, reduced costs and a favorable status with customers and key resources. Benefits are magnified when there is an unanticipated problem, key materials are in short supply, there are disruptions in one’s supply chain, or when being treated in a priority way can make the difference between success and failure.

Collaboration is more important than ever with increased complex global logistics issues, increased demand volatility, short supply of products in high demand, lack of visibility over domestic and global supply chains, increased demand for service, and cost fluctuations for raw materials and fuel. Additionally there are more multiple tiers within a Supply Chain throughout a product’s lifecycle and for services provided than ever before.

Key methods of collaborating include working with suppliers and customers to:

- Work together with your suppliers to forecast future inventory and service requirements over various possible scenarios and then plan together for normal business, heightened business, and to overcome potential obstacles.