Supply Chain Management: A Global Perspective

Chapter 11

Supply Chain Relationship Management

LEARNING OBJECTIVES

After completing this chapter, you should be able to:

1. Explain the importance of relationships to SCM.
2. Identify categories of supply chain relationships and their defining dimensions.
3. Explain the differences between transactional-based and relational-based relationships.
4. Describe the development and management of trust-based relationships.
5. Explain different causes of conflict between supply chain members.
6. Describe methods of dispute resolution and negotiation.

Chapter Outline

• Supply Chain Relationships

  Importance of Supply Chain Relationships

  Relationship Dimensions

  Scope

  Criticality

  Supply Chain Relationship Matrix

• The Role of Trust

  Trust-Based Versus Power-Based Relationships

  Developing Trust-Based Relationships

  Assessing the Relationship

  Identifying Operational Roles

  Creating Effective Contracts

  Designing Effective Conflict Resolution Mechanisms

  Managing Trust-Based Relationships

  Commitment

  Clear Method of Communication

  Performance Visibility

  Fairness

• Managing Conflict and Dispute Resolution

  Sources of Conflict

  Dispute Resolution Procedures

  Litigation

  Arbitration

  Mediation

  Negotiation

• Negotiation Concepts, Styles, and Tactics

  Leverage

  “Position” versus “Interest”

  Negotiator's Dilemma

  Negotiation Styles