Strategies for Effective Supplier Relationship Management

¶ … Air Force runs its supply chain, in particular with respect to supplier relationship management. The Blanchard article covers the same topic, but in a two page listicle sort of format. However, since they both cover roughly the same topic, they can be compared on the basis of the ideas that they put forth. Chenoweth outlines some best practices in supplier management.

These include managing suppliers on the basis of total business, not individual products; measuring supplier performance; involve key suppliers at early stages of design; host high-level meetings with suppliers; recruit skilled personnel and develop personnel so that they have knowledge of suppliers. Blanchard has a slightly different take. It begins with an overall understanding of the supply chain as holistic entity, where decisions made in one aspect of the supply chain affect other aspects.

There is some overlap with taking the approach that Chenoweth recommends of measuring suppliers on the basis of their total business. Too often, supply chains are managed on the basis of individual products and both authors are arguing against that. Blanchard and Chenoweth agree that supplier performance needs to be measured. Setting service levels and developing metrics are both important aspects to take into consideration. Blanchard goes a bit further, arguing that these measures have to be backed by appropriate rewards and penalties, which makes sense.

The other elements of the Blanchard approach, however, different from Chenoweth's recommendations. Chenoweth seems to take an approach that focuses on setting out terms and conditions for working with suppliers, but Blanchard looks at this from the buyer's point-of-view specifically. The buyer has to have contingencies for when things go wrong, and the buyer has to expect that at some point in the process there will be problems.

Where Chenoweth argues for measuring supplier effectiveness, there is little talk in that article about what to do when a supplier is ineffective. In that sense, Chenoweth is more progressive in nature; focusing on how to make things go right with suppliers, where Blanchard is more defensive in nature, arguing more about how the company can protect itself when things go wrong. Both authors recommend meetings with suppliers, however.

Blanchard accepts that meetings are common, and argues that meetings should focus on important issues, but does not elaborate on what those issues might be. In contrast, Chenoweth is clear about the things that should be discussed with suppliers, in part because Chenoweth is oriented towards working with suppliers towards specific strategic objectives. Arguably, Chenoweth sees suppliers more as strategic partners, which is a modern view, and one that fits with the military perspective.

In the military, there are only a handful of suppliers for any given product, and it is important that the suppliers understand what the military needs, because the military has a specific vision about what will give it a competitive advantage. This contrasts with the more defensive view that Blanchard takes, where suppliers are important, but they are not strategic partners, and their contribution will not make or break the.