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Supply Chain
Management: Trust and
Cooperation presented
by Dr. Darren Prokop,
Professor of Logistics,
University of Alaska, Anchorage.
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What is supply chain management?
It is the linkage
of organizations in
order to meet some
strategic goal.
Linkages could be
achieved through
contractual relationships
or through mergers
and acquisitions.
Linkages could be more informal
and involve a joint venture
or a strategic alliance
covering a more limited
business activity.
In any case, the intent of
supply chain management
is to foster
trusting relationships
whereby the partners
are more valuable
together than apart.
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Raw materials, subassemblies,
finished goods as tangible
items are part of
a value-adding process as they
proceed downstream
along a supply chain.
Support services as
intangible items
also provide value as
they proceed downstream.
Of course, one hopes that supply
chain relationships lead
to knowledge creation and
innovation reflected
in the production of
sought-after goods and services
that are price competitive.
For these relationships to work,
an environment of
mutual trust and
cooperation is necessary within
a team, since one
person alone cannot
think of everything and
just tell everyone
else what to do.
In other words, successful
supply chains, i.e,
where relationships
are more than just
transactional, require
team building.
Cross-functional
collaborative teams could
work within a company
at the department,
division or company-wide level,
at a supply chain
node between a vendor
and a buyer or over
multiple nodes.
Basically, the goal is to
invest in the human factor in
