The supply chain crunch has turned the once-staid world of manufacturing and industrials upside down. Debates about inflationary pressures are raging.
What more could go wrong? A lot, especially if the grease that makes the wheels turn starts drying out trib.al/NNG3pn9
What more could go wrong? A lot, especially if the grease that makes the wheels turn starts drying out trib.al/NNG3pn9
That lubricant is trust.
The world has had to deal with the supply and demand imbalance of physical goods so far.
Trust plays an unquantifiable but critical role in the codependency between manufacturers and several tiers of suppliers trib.al/mBGHcu9
The world has had to deal with the supply and demand imbalance of physical goods so far.
Trust plays an unquantifiable but critical role in the codependency between manufacturers and several tiers of suppliers trib.al/mBGHcu9
Without trust, the commitment on receipt and delivery of products, parts and payments weakens.
That uncertainty cripples businesses, raises costs, and decreases productivity and efficiency trib.al/mBGHcu9
That uncertainty cripples businesses, raises costs, and decreases productivity and efficiency trib.al/mBGHcu9
In supply chain literature, trust is broadly defined as a “firm's belief that another company will perform actions that will result in positive outcomes for the firm” and the other business won’t take “unexpected actions that result in negative” results trib.al/mBGHcu9
Everything is a moving target. Firms aren’t actively taking actions to hurt other companies but are protecting themselves from the constantly evolving shortages and glitches.
The supply chain uncertainties are dynamic, says the CEO of J.M. Smucker trib.al/mBGHcu9
The supply chain uncertainties are dynamic, says the CEO of J.M. Smucker trib.al/mBGHcu9
Supply chain uncertainties are forcing businesses to change their behaviors along with production.
Another unknown is that the supply base is mostly in Asia, and largely concentrated in China, while demand is predominantly in the U.S. bloomberg.com/opinion/articl…
Another unknown is that the supply base is mostly in Asia, and largely concentrated in China, while demand is predominantly in the U.S. bloomberg.com/opinion/articl…
As one study put it, “A lack of trust among trading partners often creates a condition where every transaction has to be scrutinized and verified.”
That increases costs to unacceptably high levels, and productivity, efficiency and effectiveness are lost trib.al/mBGHcu9
That increases costs to unacceptably high levels, and productivity, efficiency and effectiveness are lost trib.al/mBGHcu9
If the supply chain snarls ease, companies will still have to figure out how to navigate a new normal.
Manufacturers likely have a new perspective about how their customers and suppliers behave after watching them manage through deeply stressful times trib.al/mBGHcu9
Manufacturers likely have a new perspective about how their customers and suppliers behave after watching them manage through deeply stressful times trib.al/mBGHcu9
One way to alleviate the pressures, experts say, is by pushing managers to get more deeply involved in relationships with suppliers, and making a habit of communicating and exchanging information trib.al/mBGHcu9
The sooner companies start acknowledging a growing trust gap, the quicker they’ll start to find solutions.
Until then, supply chains will remain strained trib.al/mBGHcu9
Until then, supply chains will remain strained trib.al/mBGHcu9
• • •
Missing some Tweet in this thread? You can try to
force a refresh
