F or more than three decades supply chain managers have been told that sig- nificant benefits can be gained by developing collaborative relationships with key customers and suppliers that are based on purposeful cooperation over
time, the identification and implementation of joint initiatives, and the sharing of
financial gains. While a number of success stories have been reported in the
press, evidence suggests that managers still experience great difficulty in
implementing relationships that meet the expectations of both parties.
Our research has shown that there are two primary reasons for
disappointment with the outcomes of collaborative efforts. The
first is that one or both parties had unrealistic expectations going
into the relationship. The second is that the expectations were
reasonable but were never articulated and agreed upon, thus
no plan for achieving them was developed, and failure was
the result.
Managers need a methodology that they can use with key
customers and suppliers to structure collaborative relationships. With this in mind, two tools were jointly developed by
researchers and executives associated with the Global Supply
Chain Forum of The Ohio State University: The Partnership
Model and The Collaboration Framework. These tools are
used in a 1.5-day session and a one-day session, respectively,
to provide a structure that enables management to articulate and communicate expectations, agree upon joint
goals, develop a plan for achieving those goals, and measure the benefits in financial terms. In this article, we will
In 2011, Bob Evans Farms and Gordon Food Service
began to jointly identify and actualize opportunities for
profit growth through the use of cross-functional teams.
The financial benefits to date have exceeded $31 million
dollars. Here’s how they achieved those stellar results.
BY DOUGLAS M. LAMBERT AND MATIAS G. ENZ
Co-creating value:
The next level in customer-supplier relationships
