A sustainable decision framework for maintaining engagement between corporations and community stakeholders: breaking down the barriers of supply
Traditional lines of supply have, over time, developed natural barriers that reduced the supply network efficiency and the opportunity to develop a win-win environment between corporations and community stakeholders. This situation originates from the early stages of a new program integration regardless of stakeholders intent. As such, early program integration is crucial for having any meaningful improvement away from traditional arms length supply relationships.
The performance of organisations within the supply network is intertwined. For successful integration, information will need to flow efficiently throughout the supply network and be accessible to community stakeholders who represent a node within the supply network. Having timely and accurate information will help supply networks minimise costs and concentrate on being customer-centric. However, this creates pressure on supply nodes to increase collaboration that breaks down the natural barriers typical to many networks.
However, most supply networks rely on legacy systems that jeopardise the networks ability to innovate and deliver early and therefore successful program integration. To exacerbate the problem, most community and corporate departments become highly involved in day-to-day operational needs that limit program success.
Typically most models of early supplier engagement are coupled with standard requests for tender processes that do not address potential risks inherent with what has become the outsourcing of strategic intent.
By drawing on current case study materials, this paper discusses the inherent risk to organisations who continue to attempt overlaying integration programs into classical hierarchical structures and delivers a novel decision framework for maintaining engagement between corporations and community stakeholders.