Requirements for a Successful Supply Chain
Several elements are mandatory for the successful implementation of a supply chain management program. These elements often overlap and often are dependent on each other.
A primary ingredient in the establishment of a successful relationship between vendor and customer is the element of trust. Without trust, none of the other factors is possible. Trust allows vendors to participate and contribute in the new product development cycle .
Long- Term Relationships
With suppliers taking on a strategic role in a company, it is necessary to develop long-term relationships that permit the sharing of a strategic vision. The term often used in establishing these long-term relationships is evergreen contracts, implying they are automatically renewed as long as the vendors perform as agreed.
Successful supply chain management requires the sharing of information between lenders and customers. This information can include everything from new product design specifications o capacity planning and scheduling, and even access to a customer's entire database