The value of collaborative supply management
To address the complex challenges of reducing logistics costs, optimising transport use and reducing inventories, Supply Chain players can no longer manage all of their logistics operations individually. To remain efficient, companies must make their individual value chain collaborative. The solution? Mutualize the means, give global visibility to each stakeholder and ensure synchronization at all levels including customers, manufacturers, and providers. There are numerous benefits to Shared Supply Management (SSM). This strategy helps improve the management of logistics activities and delegates the supply load, but also can increase business volumes or reduce returns and waste.
Shared Supply Management or Pooling : What are the differences ?
Shared Supply Management is a continuous replenishment strategy aimed at improving the availability of linear products and reducing inventory. It allows for the transition from pushed flow logic to a dynamic of drawn flows.
Pooling is a variation of Shared Supply Management which consists of bringing different manufacturers together around the same procurement process. When they have the same customer and location, they can engage in a collaborative logistics process.
Summary of the white paper
To help you understand how Shared Supply Management works and to get a global view of its issues and benefits for every player in the Supply Chain, Generix Group experts have prepared a three-part white paper.
- The fundamentals of shared supply management
- Shared Supply Management: what are the benefits?
- Beyond Shared Supply Management: 10 pooling and shared supply management models
This last part goes into detail on alternative or complementary practices to Shared Supply Management, which also improve procurement performance: Vendor Managed Inventory, Collaborative Planning Forecasting and Replenishment, cross-docking, multipick, etc.