Question

In: Operations Management

apply the compatibility and trust assessment and model to an ideal hypothetical healthcare supply chain relationship...

apply the compatibility and trust assessment and model to an ideal hypothetical healthcare supply chain relationship and to a less-than-ideal hypothetical healthcare supply chain management

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Expert Solution

Many companies employ vendors based on their skills and prices, but adding five cultural compatibility qualities to the equation will contribute to safer and more profitable supplier partnerships.
Professors Karl Manrodt and Jerry Ledlow have a fascinating viewpoint when it comes to buyer-supplier partnerships-particularly strategic procurement agreements where the supplier becomes more or less a purchasing company extension. Their reasoning is that skills are necessary if you're to partner with a strategic manufacturer to cover capability gaps. But, if a company picks a supplier based purely on expertise, they'll potentially end up disappointed and eventually wasting time and resources by trying to move suppliers due to a lack of cultural compatibility.
Manrodt, professor at Georgia College of logistics and supply chain, offers an example to two people dating. Most companies that have suppliers are like couples who really don't want to be together. Take a far-left Democrat for starters and a far-right Republican. We will therefore not have a strong chance to establish a healthy long-term friendship because they both view the universe from a separate lens. Similarly, businesses that have cultural gaps with how they make choices and work will not be a perfect match either. Manrodt and Ledlow agree with Christfort and Vickberg's notion that you don't want to have someone just like you on your team, as it stymies diversity of thought and creativity. The contrast, though, is that Manrodt and Ledlow agree complexity is multifaceted. They say dealing for a manufacturer who is culturally inconsistent with the way their company takes decisions and works, if not disappointment, would set them up for dissatisfaction.
Manrodt has been consulting with Dr. Jerry Ledlow, Director, Urban and Rural Health Program at UT Hospital, Tyler's University of Texas Health Science Center, and Professor, Public Policy, Economics, and Management Department. Dr. Ledlow has written a number on management and leadership, and they tried to determine cultural alignment between a customer and seller together. The pair created the Reliability and Trust Appraisal (CaT) together. For businesses, they identify the CaT as an Online dating site.
Five Attributes of Buyer-Supplier Compliance. Manrodt and Ledlow's Compliance and Trust Analysis looks at reliability and cultural alignment across these five aspects:

  • Trust: The basis of trust is the ability to deliver and meet obligations. Trust can not occur without success.
  • Innovation: Good and trustworthy partnerships encourage the participants to divide risks and benefits, engage in the capacity of each other, and cooperate to achieve mutual objectives.
  • Communication: Free and prompt exchange of all knowledge related to the capacity to make decisions.
  • Unit orientation: The alliance is assumed by everyone inside a unit partnership. There is an attempt to interpret actions from the viewpoint of one another in order to minimize dishonesty and encourage cooperation.
  • Focus: A shared goal, consistency of the mission and course is present.

For strategic sourcing, a more comprehensive and clear approach is required. First, an outline of the model is given and performance and consistency definitions are evaluated. The greater-order model is a move from the Kraljic model into a more complex and modem structure. The design also suggests pragmatic alliance or collaboration models; these types are combined with the models of Williamson that demonstrate the progression of thinking in the CAAVE paradigm and reflect on the idea of "win-win" Nash. Several ideas are raised when contrasting the two models to justify the need to develop into a more modern paradigm. In the midst of these Kraljic model elaborations, another phase of growth can be identified. This second wave is oriented towards classifying the quality of buyer-supplier partnerships as opposed to Kraljic's initial emphasis.

Thus we can say that supplier relationship that are based on trust are more beneficial than just strategic partnerships.


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