The relationship between manufacturers and end customers in supply chain integration

Supply Change Synthesis Resolving Conflict

The complex systems that are present in the supply chain structure creates both solutions to old problems, however create new issues to deal with as well. The relationship between manufacturers and end-customers are unique and require a strategic plan that specifies what unique characteristics are inherent within that relationship.

This essay aims to explore the relationship issues within the supply chain itself and discuss why integrating the supply chain may create conflicts within that structure. Essentially this essay will argue that fundamental principles based on shared values expressed through strategic design, provides the best model of supply chain management that can be practically expressed in real world situations and contribute to the overall effectiveness, efficiency and economics of the effort.

Defining The Relationship

To understand any subject or problem, it is necessary to first gather the details and facts of the case at hand. Mentzer et al. (2001) suggested a comprehensive definition of the concept "supply chain management." They authors wrote " a supply chain is defined as a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer. Given the potential for countless alternative supply chain configurations, it is important to note that any one organization can be part of numerous supply chains. Wal-Mart, for example, can be part of the supply chain for candy, for clothing, for hardware, and for many other products. This multiple supply chain phenomenon begins to explain the network nature that many supply chains possess."

It must be understood that relationship between any one entity within the supply chain is unique, and carries with it, a unique approach that must be taken to make the best of the relationship. In many cases supply manufacturers may become too scientific in their approach and rely too much on analytics and math to determine the best avenues of approach for a specific problem. This scientific approach, is necessary in the analysis process, but relying too much on empirical example and foggy statistical inference can lead to problems.

Communication As A Key Issue

The root of the word "corporation" means death, like in the word "corpse." Corporations are essentially lifeless organizations that have been awarded certain personhood rights in many aspects of society. This wording is unfortunate because it disregards the necessity of individuals grouped in organizations to fill relationships with life and vigor. Statistics can help provide emotional support, but remembering that management is both an art and science creates the need to view supply chain management relationships as living things. Communication is a key component of living things.

Relationships are merely outlets of communication. The way we communicate demonstrates just as much, and sometimes more, than the message itself. How and what we say to one another lies at the heart of any issue. Chen & Parulaj (2004) agreed with this concept when they wrote " extant research has demonstrated the necessity of two-way inter-organizational communication for successful supplier relationship. . Effective inter-organizational communication can be characterized as frequent, genuine, and involving personal contacts between buying and selling personnel. In order to jointly find solutions to material problems and design issues, buyers and suppliers must commit a greater amount of information and be willing to share sensitive design information."

The roots of communication are based in expressing language and intent. Languages are often represented in statistics and numbers as well. Language is merely a tool, and what is more important in understanding these relationship problems is that the method of the tool's usage dictates its overall effectiveness.

Resolving Conflict Within the Supply Chain

The human nature within all of us requires that interpersonal conflict is necessary. Its frequency, however can be managed to some degree with an appropriate use of reason and strategic intent. Conflicts arise due to fear and emotion. The fear of losing profits, or perhaps simply failing at the job, provides much fuel to the fires of conflict that are often seen in supply management issues. Conflicts arise due to miscommunication. Conflicts can ultimately be resolved, and the relationship restored to useful levels with an appropriate conflict resolution approach that can be done with minimizing the emotional problems that are often associated in these types of transactions. "Because supply chain management necessitates sharing of traditionally proprietary information, strategy, planning, and goals, most firms do not feel comfortable exposing such elements to other firms, fearing a loss of control, " (Benton & Maloni, 2005).

Strategic and Objective Alignment