Question

How important do you feel it is to get second-tier supply chain partners (customers and suppliers) involved in a company’s supply chain activities? Answer in 150 words

Answer 1

It is extremely important to integrate customers and suppliers in overall supply-chain process. The main benefit of involving second-tier supply chain partners is increased coordination and control across overall supply chain process. Another important advantage of integrated supply-chain is formation of loyal partnerships, both with customer and suppliers. Transforming sourcing and customer relationships into partnerships increases overall trust levels. It transforms into predictable sourcing and steady performance. Involving customers helps in improving overall customer loyalty and satisfaction as they experience improved service and on-time delivery. On the other hand, involving suppliers increases loyalty among partners which improves overall supply chain efficiency. It creates a strong supply-chain network with diminished inventory needs and increased flexibility to deal disruptive situations. Recent research reveal that companies with integrated supply chain network had higher inventory turns, improved on-time delivery, lower inventory, and increased sales. Overall, it creates a robust, efficient and productive supply chain.