Within the supply chain, there is a requirement to develop relationships. Businesses must support each other in order to ensure successful relationships. All parties involved within the relationships must receive or gain significant benefits in one or more areas of their business: these benefits would not normally be possible without the relationship.
For the sake of mutual benefit, business can rely on each other on an operational basis. This in turn creates a business environment where the total of the parts is greater than the whole.
The ultimate aim for any type of supply chain relationship is to be successful.
A good supply chain relationship can achieve:
- Reduced Costs;
- Reduced Production Materials;
- Reduced number of Transactions;
- Improved Value; and
- Ensure appropriate Quality.
An example of these relationships can be seen in the following Video: