Academic journal article Journal of Positive Management

Promoting Cooperation in Supply Chain as an Advanced Management Tool

Academic journal article Journal of Positive Management

Promoting Cooperation in Supply Chain as an Advanced Management Tool

Article excerpt

1.Introduction

The coordinator role of activities in a supply chain plays chain leader. A decision regards fore front of the whole chain is dependent on company position, its economic power, size and authority. Supply chain leader should take care of all the targets to set for chain, but also to effectively promote cooperation between its cells. This means that the main task of leader is skillfully involving people and groups that often are not formally subordinate to him, to the inspiring work on common goals, despite differences in beliefs, cultural values and norms of action.

It should be emphasized that presented in this article approach to supply chain management is the exact opposite of command-and-control model. Propagated approach can be described as promoting cooperation leadership.

Supply chain management is a difficult area of organization activity. The more links are in a chain, the bigger risk of organizational problems can occur. Today, companies that want to maintain a competitive advantage must learn to interact with other organizations. The success factors for companies operating in the market is to focus on their core competencies and ensuring proper development of relations with suppliers and customers. Only such an approach can now ensure success and high efficiency of the supply chain (Varsei, 2016).

An important element of cooperation between supply chain links is making changes in their relationship. Between companies forming common operation network there is no agreement based on the concept of transactional, but now it is a relationship built on the concept of cooperation. A key issue arising from this concept is mutual trust and implement the strategy of "win - win" that leads to the creation of a logistics partnership (Kifor et al., 2012). This kind of partnership existed between entities creating an integrated supply chain gives the chance to effectively confront the competition and creates the conditions to meet the needs of buyers.

The aim of the article is to present the benefits for various supply chain links, which are managed by the leader who successfully promoting cooperation. Also presented a theoretical culture of trust and teamwork model, based on four key pillars. Furthermore, it describes the most important indications for supply chain leadership in promoting co-operation.

2.Supply chain links - the process of creating a cooperation model

Enterprises, which build together supply chain, are doing this because they see in this action some tangible benefits. Collectively implementation of tasks means to achieve the synergies and execute such projects, that alone would not be feasible.

High awareness of leader who manages the supply chain allows to distribute between remaining links the idea of community-oriented cooperation. The key issue is to constantly encouraging people to constantly use their talents required for functioning of the whole chain. Because in the organizations striving to achieve a common goal is supported by the organizational structure of these companies, it is possible to use the talents and expertise of knowledge workers to the needs of flexible projects, the results of which will serve all links in. Such activities encourage both innovation, agility, but also greater performance and scalability (Adler et al., 2012).

It is worth noting that more and more companies concedes that they achieve more benefits through collaborative thinking. An example would be IBM, whose management emphasizes that with proper approach to the cooperation issue with their suppliers and colleagues, they were able to obtain significantly higher margins from the implementation of activities that require intensive knowledge. In addition, they were able to reduce errors by 75% over six years and to increase its efficiency by about 10% per year, in addition to create more innovative and technologically advanced products. All this brilliant achievements were possible to implement thanks to the introduction of certain organizational changes, closely related to cooperation. …

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