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The main contents of the chapter consist of the following: Supply chain relationships; the role of trust; managing conflict and dispute resolution; negotiation concepts, styles, and tactics; relationship management in practice. | Chapter 11 Supply Chain Relationship Management 11-1 Lecture Outline 11-2 Supply Chain Relationships The Role of Trust Managing Conflict and Dispute Resolution Negotiation Concepts, Styles, and Tactics Relationship Management in Practice Copyright 2011 John Wiley & Sons, Inc. Importance of Relationships 11-3 Copyright 2011 John Wiley & Sons, Inc. SCM is primarily about the management of relationships across complex networks of companies Issues include: respect and trust joint ventures negotiation contracting conflict resolution Relationship Management as an Element of SCM 11-4 Copyright 2011 John Wiley & Sons, Inc. Relationship Dimensions Relationships should be segmented based on how much management is needed Two Dimensions: Scope degree of responsibility assigned to supplier greater scope means greater dependence Criticality extent to which the sourced item or task impacts ability to perform core competencies 11-5 Copyright 2011 John Wiley & Sons, Inc. Relationship Dimensions . | Chapter 11 Supply Chain Relationship Management 11-1 Lecture Outline 11-2 Supply Chain Relationships The Role of Trust Managing Conflict and Dispute Resolution Negotiation Concepts, Styles, and Tactics Relationship Management in Practice Copyright 2011 John Wiley & Sons, Inc. Importance of Relationships 11-3 Copyright 2011 John Wiley & Sons, Inc. SCM is primarily about the management of relationships across complex networks of companies Issues include: respect and trust joint ventures negotiation contracting conflict resolution Relationship Management as an Element of SCM 11-4 Copyright 2011 John Wiley & Sons, Inc. Relationship Dimensions Relationships should be segmented based on how much management is needed Two Dimensions: Scope degree of responsibility assigned to supplier greater scope means greater dependence Criticality extent to which the sourced item or task impacts ability to perform core competencies 11-5 Copyright 2011 John Wiley & Sons, Inc. Relationship Dimensions Continued As scope and criticality increase, so does the risk to the buyer 11-6 Copyright 2011 John Wiley & Sons, Inc. Relationship Matrix Four categories of relationships: 11-7 Copyright 2011 John Wiley & Sons, Inc. Non-Strategic Transactions low scope and criticality transaction oriented relationships typically standardized products limited buyer/supplier communication typically alternative sources of supply 11-8 Copyright 2011 John Wiley & Sons, Inc. Contractual Relationships high scope and low criticality moderate levels of communication some relationship management required due to size of arrangement relationship based on formal contracts 11-9 Copyright 2011 John Wiley & Sons, Inc. Partnerships low scope and high criticality limited frequency of interaction strong trust between supplier and buyer relationship management not extensive 11-10 Copyright 2011 John Wiley & Sons, Inc. Alliances high scope and high criticality high interaction frequency significant trust and commitment between
