As more members join by committing to supply chain developments, the network expands, relationships evolve, and activity shifts from being OEM-centric to having multiple influences. Ideally, the network is a collaborative environment where all members are involved in defining the processes and contributing to the value of the finished product. The most basic stage, built around an internal MRP system that is lead-time driven. It includes tier-one suppliers only. Most planned vendor interaction is through documentation and seldom involves status reporting.
Communications are transactional and include quoting, purchase orders, and releases.
This stage is characterized by an increased scope and includes tier-two suppliers and beyond. There is also increased interest in status reporting, some data sharing among participants, and generally more complex interrelationships. Communications are transactional with the addition of data flow. Includes programs that benefit all members of the chain. It elevates supply to collaborative involvement among the members, including strategic planning and risk sharing.