Discuss the differences between supply chain partnerships of the past and those that have developed today

Answer 1

In the past, supply chain partnerships did not really exist.
• Supply chains were seen as a series of independent organizations that were looked on, to perform their core competency for the sake of their downstream "partner."
• Firms in the past did not seek to share information.
• Buyers of supplies and services instead usually were reduced to bargain hunters. Low cost was valued over quality.
• Traditional relationships were also characterized by a large number of partners and short-term contracts. This put an emphasis on low cost that would provide short-term profits versus sustainable profits that might come along with consistently high quality goods and services.
• In some cases, conglomerates were formed by firms seeking more supply chain control.
Modern supply chain partnerships are much different.
• Partnerships of today encourage sharing and collaboration from the design phase to the delivery phase.
• Partners, nowadays, see each other as a chain of customers connected by their goal of pleasing the final end customer.
• While cost is still an important aspect of creating value for the customer, today supply chains also focus on the importance of higher quality, more customization, and swift delivery service.
• It is for this reason that modern partnerships focus on collaboration from the moment they begin to design a product until the product's lifecycle has run its course.
• Modern partnerships often include a small number of partners who understand the value of long-term contracts that value quality, speed, and flexibility as much, if not more, than cost.