WAY #3: SET COMMON GOALS
WHICH FOCUS ON WIN-WIN
OUTCOMES & RESPONSIVENESS.
WAY #3: SET COMMON GOALS WHICH FOCUS ON WIN-WIN OUTCOMES & RESPONSIVENESS.
IN OUR LATEST INSIGHTS PIECE, WE EXPLORE THE THIRD WAY IN WHICH VALUE CHAIN COLLABORATION SUPPORTS THE VISIBILITY AND RESILIENCE OF THE VARIOUS SUPPLY CHAINS ORGANISATIONS DEPEND ON DAILY.
IN OUR LATEST INSIGHTS PIECE, WE EXPLORE THE THIRD WAY IN WHICH VALUE CHAIN COLLABORATION SUPPORTS THE VISIBILITY AND RESILIENCE OF THE VARIOUS SUPPLY CHAINS ORGANISATIONS DEPEND ON DAILY.
#3
SET COMMON GOALS WHICH FOCUS ON
WIN-WIN OUTCOMES & RESPONSIVENESS.
Collaboration becomes focused and constructive when parties agree on common objectives – such as appropriate product design as well as optimal production, distribution and raw material sourcing – to benefit the consumer and ultimately those partners involved.
As illustrated in Figure 1 below, value chain partners can achieve this by a joint understanding of the golden threads which expose win-win and hidden insights and opportunities across the chain. The collaboration process should be ongoing and based on facts and data, rather than the results of one-off projects or initiatives. It is built on trust and embedded in the culture of partner organisations.
TIER 4 SUPPLIER
Input Cost Dynamics
Yields and Losses
Seed Options
Mechanisation Options
Recycling Options
TIER 3 SUPPLIER
Commodity Price
Dynamics
Variety Options
Primary Processing
Waste Hotspots
Procurement Data
TIER 2 SUPPLIER
Cost of Logistics
Waste Hotspots
Sourcing Regions
Secondary Markets
Procurement Data
TIER 1 SUPPLIER
Order Fill Data
Recipe Configuration
Production Efficiencies
Product Costing
Procurement Data
RETAILER / CONSUMER SERVICES
Sales
Promotions
Market Share
Customer Complaints
Store Waste
Product Design
Figure 1
As per the illustrated example, as is often the case with market opportunities such as repositioning or launching specific national or private label brands, value chain partners will need to agree on the need to review and redesign a current product and category offering and target pricing to seize an opportunity in the market. It is key for partners to understand the value chain and cost dynamics of the current offering in order to identify and target selected opportunity spaces and the insights and data required to deliver on it.
In recent years, market conditions driven by consumer needs for a more cost-effective and quality-focused product offering have shifted the competitive landscape.
Actors across the value chain need to adapt their response to this fundamentally and it is evident that
those who can collaborate effectively will be able to optimise the typically high transaction costs
which exist in traditional buy-sell relationships.
A THREE-STEP PROCESS APPLIES IN THIS EXAMPLE:
Value chain visualisation and
alignment of the priority of
opportunities and risks to be
jointly targeted.
Alignment of the insights
required to deliver on them.
Prioritisation of the facts and
data required to support those
insights.
A THREE-STEP PROCESS APPLIES IN THIS EXAMPLE:
Value chain visualisation and alignment of the priority of opportunities and risks to be jointly targeted.
Alignment of the insights required to deliver on them.
Prioritisation of the facts and data required to support those insights.
IN OUR NEXT INSIGHTS PIECE, WE WILL TAKE A CLOSER LOOK AT WHY VALUE CHAIN PARTNERS NEED TO AIM FOR PRICE AND COST TRANSPARENCY TO ACHIEVE WIN-WIN OUTCOMES AND RESPONSIVENESS.
