Three Levels of Frictionless Supply Chain Collaboration

Supply Chains Have Become Increasingly More Sophisticated And Complex in The Last Several Decades; How Can We Achieve Frictionless Supply Chain Collaboration?

Supply chain collaboration is defined as two or more firms working jointly to plan and execute operations. Successful collaboration requires the sharing of information in real-time. It means that the firms involved in collaborating do so without any hitches or “friction” – that the companies can readily and easily share information with each other.

Why is collaboration important in the construction supply chain? When we collaborate with our suppliers, producers, haulers, and contractors, we are able to improve product schedules, productivity, and costs. The more we collaborate with each other the more value we get out of our business and relationships. The more we collaborate with our suppliers and other partners, the more accountable we are to each other and the more we benefit from operational efficiencies.

According to Supply Chain Digest, there are three general levels of supply chain collaboration. These include:

Level 1: Transaction Integration – This involves the sharing of transactional data such as purchase orders, invoices, payments, credits, etc.

Level 2: Supply Chain Management Information Sharing – The data gathered is shared with partners to help them make the best decisions. Type of information that is shared at this level include: production forecasts, production capacities, transportation plans, bills of materials, inventory levels, product and material availability, and more.

Level 3: Strategic Collaboration – This involves joint planning and joint decision-making on issues that improve the accuracy of forecasts, enhance sales and operations planning, accelerate and manage material procurement and fulfillment, and more.

What does it take for effective and successful supply chain collaboration?

It takes a robust platform and network to collaborate with your construction business partners. Command Alkon’s CONNEX allows construction businesses to connect and collaborate, resulting in more visibility into operations, real-time collaboration and smoother business workflows.

With a collaborative platform built for the construction industry that incorporates business intelligence and powerful analytics, your business will gain ever greater knowledge to ensure your business thrives as a market leader.

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