Trust must be built through a process of regular communication across the supply chain, which includes all parties involved in the flow of goods.
Communication can be established by a variety of means. In addition to electronic communication, face-to-face communication via meetings is also a good idea. Trust is easier to establish by means of personal meetings, where ideas and information can be shared among the various stakeholders. Trust can also be established and maintained by means of a contract stipulating that information is not to be shared with parties outside the supply chain or those who do not have a direct interest in the supply chain itself.
A long-standing relationship with suppliers will also create a basis of trust if goods and services supplied are of a consistently high quality. In order to ensure this, each company within the supply chain should share its specific requirements for the goods, services, and delivery times that they require. These requirements should also be consistent with the demands of customers at the end of the supply chain. APS and EPK systems are a useful way to organize and disseminate such information with efficient speed across the supply chain.
Through meetings, the needs of each company in terms of information technology should be established. A regular schedule for communication should be established in order to promote trust and information sharing among companies.
The purpose of communication and trust among supply chain companies is to match the demand for bedroom furniture products with the supply in order to establish a lean manufacturing paradigm. This can be done by means of a Materials Requirements Planning system, which allows suppliers to plan for future materials supply. Known future orders are recorded with forecasted orders to ensure the on-time delivery of sufficient materials. The amount and delivery requirements of these materials are determined by the system and communicated across the supply chain to ensure the smooth flow of products. The quality of these products is also determined by means of communication and regular inspection. While communication eliminates the need for daily inspection, it is suggested that a fairly regular inspection system be in place in order to ensure continuous quality.
In the past, business systems tended to function on the basis of competition, mistrust, and careful guarding of information. In the current business paradigm, the value of collaboration is increasingly recognized, particularly among the various parts of the supply chain. Through communication, all elements that constrain collaboration within the supply chain should be identified and managed in order to create a more open relationship of trust. Across the bedroom furniture supply chain, then, companies should understand that they collaborate in order to reach the common objectives: providing customers who require bedroom furniture with optimal quality within a reasonable time frame.
Each "link" in the supply chain then benefit from this collaboration and from sharing information in terms of design, engineering, problem-solving, and reaction to the marketplace and its demands (Pye Tait, 2003). The supply chain therefore needs to be mapped in order to understand the network of companies that collaborate to add value to the product on its way to the end customer.
Trust is established on the basis of both experience and confidence. A long-standing relationship more readily involves trust than one that has been established recently. Experience-based trust can therefore only be established in the long-term. Shorter-term trust is however possible via communication that promotes mutual confidence.
Confidence is promoted by means of regular communication on both the electronic and other platforms. Companies need to regularly meet and share their ways of adding value to the supply stream. Making this information visible established confidence in each company's ability to add such value. Consistently adding value further promotes trust. Another excellent way of promoting both confidence and excellence is by means of personnel training. Training needs should be established before a mutual agreement is reached among all parties in terms of the training required for personnel across the supply chain. Regular training also ensures that personnel can maintain the determined standard of value, as related to customer demands at the end of the supply chain.
Furthermore, personnel training is also a valuable way to establish lean manufacturing paradigms across each company. Personnel members need to be made aware of lean thinking principles, and how this is an advantage from a supply chain and business perspective.
Collaboration...
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