Supply Chain Collaboration: How to Implement CPFR and Other Best Collaborative Practices

The true value of supply chain collaboration comes when the information is actually used to execute business. "Actions speak louder than words" is what internalizing trading partner data is all about. We often hear people say that they have been collaborating for years, but many times it means that they have just been talking for years, which does not necessarily mean that it has led to supply chain execution. This is why we have said that the most difficult partner of supply chain collaboration is internal. So what kind of issues have we seen with internalizing trading partner data? The most typical issues are shown in Figure 46.
Cultural
Organizational
Trust
Awareness
Change management
Technology
Lack of critical mass
Excuses
Not a priority
As you can see, many of the issues involve the people and process change management difficulties that may exist. The issue also may involve technology and, in many cases, lack of understanding of the value in sharing the trading partner information.
George Palmatier, author of the book Enterprise Sales and Operations Planning and a senior principal for Oliver Wight Americas, Inc., described the internalizing of trading partner data as the "pitch and the catch." Traditionally, one trading partner throws or passes the information for the other trading partner to catch. The important part is what the catcher does with this valuable information. In many cases, we fail to involve the other players on...