Eliminating Conflictfrom your Supply Chain
Smooth operation of your supply chain is vital to the smooth operation of your business. If your supply chain isunreliable or doesn't have the capacity to handle unexpected situations, the smallest setback can snowball into an

avalanche of problems. When your supply chain is functioning smoothly and conﬂict free, your design, purchasing,and operations departments can work and communicate harmoniously, eliminating mistakes and interpersonal friction.

Supply chain problems that arise internally can be grouped into two general categories: omissions and mistakes.
Below we will examine examples of common sources of conﬂict in supply chains and how they can be overcome.
Jenny, we put in a request for sensor parts and extension cables, and we got
the sensors but no cables. Was there some problem?

John

Manager in the plant operations department

Well, John, we put in the order just like you asked and they sent us thesensors.
Didn’t the sensors come with the cables? We only need the standard ones.

Jenny

Works in the purchasing department

Actually, all extension cables are optional. You have to indicate them on theorder form if you need them. Would you like to fill out an order for the cables?
If we start another normal order now we won't make our schedule. Can't you
put in an immediate order?
We could place a rush order, but it will cost more. And I don't even know if
the vendor has the cables in stock.
Well, we need to do something.

This kind of conflict, which frequently crops up between purchasing and operations departments, is an example of a

supply chain omission. Omissions are usually caused by unclear communication and differing levels of knowledge about
your company's products between departments.

The most common situation where this occurs is when ordering accessories not included in standard sets, for examples

seals for machine parts and extension cables for sensors. The example above shows how this can play out. The

operations department designates the length of cables on the purchase order but don't actually enter the model numbersof the cables. Then the purchasing department, not having a clear image of the product, orders the parts based on themodel numbers without knowing that information is missing. With tight schedules the norm, doubling the time required toget parts due to ordering and reordering can mean missing important deadlines.

The sources of supply chain mistakes, on the other hand, are simpler but not necessarily easier to eliminate. A supply

chain mistake means simply that the wrong component was ordered. This may be because a lineup of products includes

many similar components with similar names or because a model number was entered into a purchase order incorrectly.

Model numbers for machine parts are often more than 10 characters long, and are made up of a mixture of letters, Arabicnumerals, and Roman numerals. When you're entering dozens of long, arbitrary character sequences, errors are easy tomake and difﬁ cult to spot.When mistakes and omissions occur, it's only human nature to want to ﬁ nd someone to blame.

But simply laying blame or insisting on better future performance doesn't get at the real source of the problems and only
increases conﬂ ict in your supply chain operation. So how can omissions and mistakes be eliminated and conﬂ ict

reduced?

11911J01N-CO 5.1

ACEliminating Conflict from your Supply Chain

Understand the sources of conflict
It is important that the design, purchasing, and operations departments share an understanding of communication andconﬂict in the supply chain. Only after all the stakeholders agree on the problems can you start to search for solutions.

Understand the role of communication
Conﬂict in the supply chain arises during communication. To understand communication in purchasing, we needto look at not only what is being communicated but also when and how it happens, and what causes it to occur.
Communication, and the associated opportunity for conﬂict, is usually generated at the following points:- When the design department sends the model numbers to the purchasing department.
- When the purchasing department places the order with the supplier.

- When the operations department receives the products from the supplier.

Find the root causes of conflicts
Before you can begin to eliminate conflicts you need to have a clear idea of why they arise. Responsibility for
conﬂict can lie with any department, so you will need to examine the role each plays in the purchasing process.
Below are examples of problems arising in different departments:- The design department is always busy, and time spent on paperwork is time taken away from design work.
Checking model numbers one by one when placing orders is skipped sometimes.

- The purchasing department has relatively little knowledge about the company's products, so they don't knowthat a certain supplier's product will have a negative impact on their company's business, or that necessary
accessories weren't included in the purchase order.
- The operations department has a passive attitude toward arrangements for components, expecting them tobe available as needed, and not actively ensuring everything is accounted for.

★ Purchase
RequestDesign★
PurchasingOperations★ PurchaseOrder★ SelectingComponents★ DeliverySupplier★ When ommissions happen★ When you can conﬁrm with the supplier

2

1911J01

N-CO 5.1

ACEliminating Conflict from your Supply Chain

Eliminate the sources of conflict
Once each department understands the root causes of the problems, it is possible to eliminate conﬂict with thesupply chain. There are a variety of actions that can be taken within your company to make your supply chainasiereto manage. For example, when the busy design department needs to place an order, provide simplified

paperwork when ordering common components, and make sure the purchasing department is familiar with thebasics of the technology. Consider implementing a bill of materials (BOM) or checklist for purchases to let thepurchasing department easily check that all the necessary accessories and options have been ordered. Create

an inventory management system that automatically triggers purchases when stock of components reaches setlevels. Another method is to change the way you work with suppliers and receive support from them. THK,and other reliable suppliers, can work with departments across your company, and will be involved in thedesign and manufacturing of your product throughout its life-cycle. Integrating suppliers more deeply into yoursupply chain gives you a ready source of expertise on the components they provide, and another way to catch
supply chain mistakes and omissions before they turn into major problems.

In the design phase, THK can provide valuable consultation, and then use the knowledge gained to ensurethat there are no omissions or mistakes when orders are placed. And by staying in touch with your operations

department, we can make order and handling components as painless as possible. For example, if each machine
your company builds uses a set number of the same part, they can be bundled together and shipped ready to bedelivered to the production ﬂoor, reducing handling and simplifying ordering. Products can also be made into kitsthat contain just the exact set of accessories you need, making ordering and stocking easier and reducing waste

and packaging.

Forming strategic partnerships with suppliers that can provide these services is a winning strategy over the longrun. Doing so can help avoid conflict between departments during the purchasing process, enabling smootheroperations. Transparency between your company and suppliers can be improved by sharing production schedules
and forecasts, leading to coordinated production schedules and possibly the supplier's production being moved

to a more strategically-placed production facility. Knowing prices, shipping options, and lead times in advance lets

you confidently deal with emergency

Designsituations, before they can impact yourproduction schedule or your relationships
with customers.

CheckInventory

ReliableForcasting

Expedite
Delivery

At THK, we are committed to supporting
our customers so that their operations will
ﬂow smoothly. Our highly-knowledgeable

Teamwork amongDiﬀerent Departments

Purchasing

Flexible
Shipping Methods
Operations

Stable Delivery

sales engineers play active roles inall sales activities, helping to facilitatecommunication and eliminate conflict

between customers’ various departments.

Pros of Having
a Strategic Partner
Products Selection
Support forAdvisor
Customized Order

Long-Term Supply Structure

PLAN
IDEA
ADVICE

Global Network3

Distinct/Diverse Suggestions

Provide Leading-Edge Information

1911J01

N-CO 5.1

ACEliminating Conflict from your Supply Chain

About
THK is the pioneer of Linear Motion Systems. Today, our LM Guide is an indispensable component of mechanical andelectronic systems in a wide variety of industries. The versatility of our products and their wide use across applications
have made us an industry leader.
thk.com/resources
Learn more at

41605J01

N-CO 5.1

AC