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AF20 Collaboration With SCM Partners

AF20 AFMI -SCM -BL01M13-Day15-05Feb21 AF20

SC02 What is collaborative supply chain management?

SC02 In supply chain management, supply chain collaboration is defined as two or more autonomous firms working jointly to plan and execute supply chain operations. It can deliver substantial benefits and advantages to its partners.

Focus on continuous improvement.

Share information, risks and successes with suppliers to establish a long-term mutual partnership.

User quantitative measurement to judge if improvements are performed.

Involve the suppliers at an early stage in the design process.

SC03 What is the role of supply chain partners?


  1. ensuring Partnership in win-win Situation in the SCM chain

  2. Original sourcing or extraction of raw materials.

  3. Refining or manufacturing materials into basic parts.

  4. Assembling basic parts into finished products.

  5. Selling finished products to end users.

  6. Delivering finished products to end users or consumers.

SC04 What is strategic partnership in supply chain management?

SC04 The major difference between supply chain management and operations management is that supply chain is mainly concerned with what happens outside the company – obtaining materials and delivering products – while operations management is concerned with what happens inside the company.

Strategic alliance or partnership is solely depended on trust, faith relationship between simultaneous stages in Supply Chain. ... This alliance is kept formal in relationship between two or more organisation to achieve some beneficial goals through business by supply chain.

SC05 How can supply chain relationships improve?

SC05 Organisations can work to improve supplier relationships

  1. Be proactive. ...

  2. Communicate regularly and effectively. ...

  3. Establish roles and responsibilities and remember them. ...

  4. Understand the contractual obligations. ...

  5. Behave ethically and honestly at all times. ...

  6. Regularly review the deliverables and performance. ...

  7. Identify and monitor risks. ...

  8. Seek professional advice.

SC06 What are the basic types of supply chain relationships?

SC06 There are strategic relationships, tactical relationships, transactional relationships, internal relationships, and possibly more. There are also relationships among members of the supply chain community

SC07 Supplier Partnership:

SC07 A commitment over an extended time to work together to the mutual benefit of both parties, sharing relevant information and the risks and rewards of the relationship. These relationships require a clear understanding of expectations, open communication and information exchange, mutual trust and a common direction for the future.

Customer-Supplier Partnership:

An extended relationship between buyers and sellers based on confidence, credibility and mutual benefit.

Class Questions

Why you should share your production plan for one month in advance with your Regular/approved/Trusted Vendors. How will this help in reducing your inventory Cost?

Teachers Notes : Yes, Sharing of the Production plan improves the SCM effectiveness and improves the RoI on SCM. The fluctuations or the Bullwhip Effect can be effectively handled at all levels ensuring optimum utilisation of resources.


It helps to meet the demands of customers. Prevents excess or deficit production of goods thus reducing inventory cost.


If we share the plan in advance we can improve the plan if any changes required and accept the suggestions and this will help in reducing the expenses

Anusha Upadhye

So that demand and supplies over period of time can be addressed properly based on our inventory capacity and also vendors get in advance the activities that he should carry out to meet the plan....and deals in advance build an effective strategy for good relationship with vendors so that the company gets its vendors immediately in future when in need.


Use a purchase order system to control and monitor the buying of goods and services. forecast and react quickly to changes in demand, accurate information on stock which means you will only order the supplies you need.


This will help you in knowing the amount of goods to be produced based on the demand of the product in the market .It will help in reduction of purchase of raw materials or vice versa.


"Production plan share for one month advance because 1)it helps for maximum usage of resource allocation of activities of employees, material and production capacity in order to serve different groups of customers.

2) minimise the uncertainty among them in the inventory management .

3)They have more time to evaluate the alternative in the production plan need any changes.

4)It help to assure the all departmental work with effectively and efficiently allocation in the hierarchy.

5) Effective utilisations and time and space."


"1)By sharing we will have ability to optimize our inventory levels, so we have enough stock to meet upcoming demand, without building-up a surplus

2)help in accumulation of accurate stock

3)Development of trust and healthy partnership with vendors"


because production plan share one month before it reduces the logistics management cost for Logistics software also helps centralize control of your inventory, which cuts costs by eliminating redundant effort. This is particularly important for complex logistics operations that require a detailed inventory plan.

Shaik raheem

Avoid minimum order quantities.Increase the order frequency and provide sale forecast data helps them to anticipate your need and speed up the fulfilment process.shortening the time it takes to receive a purchase order

Sushma Rakaraddi

"This helps to

Reduce material maintenance and cost

Reduce waste

Increase flexibility

Improve supply chain management

Demand forecasting

Shorten the product life cycle "


The cost of inventory can quickly add up, leaving you with little profit and overblown expenses. You can reclaim your cash flow and grow your revenue.


It's avoid the confusion between producer and vendor because if once plan changed its affect the consumer or vendors it's lost the punctuality and sincereness of the company lost their hope by the vendor, it's affect the supply chain management, marketing the business while affect the loss,reduce the marketing channels.

Mallipeddi Abhishek Reddy

"Sharing earlier is must as it helps you and your vendors to supply the required products for you at the required time so that you can produce and supply the end products to the market according to your demand. It also helps your dealers to promise customers certain time of delivery of the product and also deliver it on time.

If u share your plan early it means you have enough time to manage your inventory and good management always reduces your inventory costs


By sharing your production plan with vendors we can have proper interaction and have good relationship, we can know the vendors ideas about the product about how to get good In sales & also in reducing transport cost and services and help in increasing in sales.


Because it reduces the conflict between the production organisation and purchaser, so avoid those consequences to early sharing of production plan is important to knowing the demand and supply management of both side it helps in the inventory.

Lakshminarasimman V Rao | SCM| Class notes | Study Material | AFMI | Corporate Neeti Consulting | Mysuru

All data above is a combination of data from Internet, purpose of this doc is for research and education only and responses received from Class students and interaction.

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