2012 Global SRM Research Report - Supply Chain (Greece)

Internal collaboration As part of a joint venture, the supply chain function may eliminate negotiation strength at a local level. It does however enjoy a lot of advantages such as: long-term relationships, collaboration and expansion over the world, access to new markets and distribution networks, increased capacity, shared risks and costs, and access to greater resources including specialised staff, technology and finance. Communication: The supply chain team sets up regular communication channels (meetings, calls, etc) with other supply chain teams and functions so that all teams are aligned to plans, objectives and changes. Interests: In case of different objectives, the supply chain team needs to balance the interests of all the teams involved and provide optimised solutions. To this end, the supply chain function provides data analysis and leads cross-functional co-operation and internal communications. Differentiation: The team appreciates that there may be an imbalance in levels of expertise, investment or assets brought into the venture by the different partners, as well as different cultures and management styles. The supply chain team tries to maintain a balance by taking advantage of the strengths of each party.

Benefits The benefits of the enhanced role of the supply chain function are reflected in its active involvement in decision making, and the importance its actions have to the company. Starbucks’ supply chain function is driving changes throughout the company and is a critical parameter for budget objectives being achieved. At an individual level, the team is enjoying the respect and feeling that its work and initiatives are impacting the company and the partners they are working with in a positive manner.

The key lessons the team has learned are:

· Know and understand the limitations of customer requests. · Aim to be 90% proactive and only 10% reactive. · Allocate responsibilities and priorities based on significance and excellence. · Work with partners that have strong competencies and strengths aligned to your business needs.