E-Sourcing Forum » Defining Collaboration

Defining Collaboration

October 4th, 2006 at 08:18am David Bush - Iasta

The article ‘True’ Collaboration: It’s in the Eye of the Beholder in a recent issue of Global Logistics & Supply Chain Strategies, even though directed at the supply chain in general, is quite true of sourcing efforts as well.

Some describe automated communication between partners as collaboration, even if the information being exchanged is purely transactional. Others believe that true collaboration should include such elements as mutually agreed upon business objectives and performance metrics as well as enterprise-spanning processes. A few say the word “collaboration” doesn’t reflect what is happening in the marketplace and ought to be thrown out altogether.

A recent survey by Capgemini, Georgia Southern University and the University of Tennessee defined ‘true collaboration’ as comprising real-time data sharing with key customers and suppliers, alignment of people and organizations, and alignment of processes and practices and found that less than 10% of 2,300 respondents were capable thereof.

I think they’ve all missed the point. Simply put, collaboration occurs when two or more parties collaborate. According to the American Heritage dictionary, the definition of collaborate is to work together, especially in a joint intellectual effort. Everyone seems to be focused on the technology, but technology is not the problem. Technology can be an enabler, but collaboration begins with a willingness to work together on shared issues and happens when both parties use whatever means necessary. You don’t need a system configured for real time worldwide data synchronization with push-based alerts whenever a deviation is detected - a homemade batch script that extracts and pushes summary reports through email on a daily basis will often do the job nicely if the fundamental desire is there to collaborate or work together. Moreover, the presence of a real-time system, even though it can greatly facilitate the process, doesn’t amount to a hill of beans if both parties are fundamentally unwilling to work together.

The real issues is trust and mutual respect for shared goals and continuous improvement. Then, any decent on-demand web-based solution accessible by all parties will provide the basis for your collaboration efforts.

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Entry Filed under: General, Suppliers, Technology / SaaS

2 Comments Add your own

1. Frank Bennett | March 30th, 2007 at 11:53 am

I agree with your point of view that collaboration can be purely transactional and for the majority even today automated communication is a dream. It is my experience that true supply chain collaboration is reserved for closed communities such as the automative industry, food processing to name two.

As we move to a mass market with the introduction eProcurement and eInvoicing we are seeing a hundreds of buying organisations engaging tens of thousands of suppliers in a new electronic collaboration. Many of the buying organisations are in service industries where just in time is not a issue with most things they need for the business available for next day delivery.

It is collaboration that is not time critical or vital to the customer’s process (as it would be for a production line) but one that reduces admin costs. Actually it is much more when you include the topics of spend control, compliance and audit.

Just as manufacturers and processors have there requirements for traceability etc. so do other businesses and collaboration is all about about putting systems and processes in place so you know what you spent money on and who with. You don’t get the big picture without your suppliers onboard.

Collaboration comes in all shapes and sizes.
2. David Bush - Iasta | April 1st, 2007 at 9:34 am

Thanks for your comments, Frank. Please come back and continue to share your thoughts and opinions.

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