the customer. Whilst the evidence of the efficacy of these supplier
associations is mixed, it does seem that if the traditional adversarial
approach can be replaced by a genuine concern to achieve
‘win–win’ outcomes then the basis for partnership can be estab-
lished.
It is perhaps this fundamental prerequisite of mutual trust that is
the hardest step in the journey to what has sometimes been called
‘partnership sourcing’. Lamming^5 has drawn some lessons from the
Japanese that suggest that ‘trust’ is not some woolly, amorphous
concept but instead is based upon a very clear understanding of
mutual commitment:
Partnership is based upon commitment, trust and continuous
improvement. The fact that Japanese assemblers do not have written
long-term contracts, relying instead on short-term stipulations for
deliveries but very long-term (next vehicle model) involvement of the
supplier, based upon mutual trust, is an indication of the very differ-
ent business culture that partnership requires.Supply chain management
As the critical role of suppliers and alliance partners comes to be
increasingly recognized, the need for formal processes to manage
the supply chain emerges. These processes are in effect an extension
of the internal linkages that create the smooth flow of information
and materials within a single organization into the other parties in
the supply chain. Supply chain management has been defined^8 as:
‘the management of upstream and downstream relationships with
suppliers, distributors and customers to achieve greater customer
value at less cost’.
The key to the achievement of this more responsive and cost-
effective marketing process is buyer–supplier integration. What this
means in effect is that rather than the totally separate decisions on
critical issues such as production schedules, inventory levels and
distribution plans that typify the uncoordinated chain, there is
instead a single ‘end-to-end’ plan to manage the pipeline as a whole.
Whilst many companies have begun the journey to supply chain
integration, few have made it to the destination. It must be recog-
nized that there are some significant hurdles to be overcome in the
168 Relationship Marketing