The programme was based on an aggregated and rationalised supplier strategy, as depicted below. Through out such a process, ongoing communication with all stakeholders is imperative. The top section displays the 'before' state problems and issues and the bottom section itemises the benefits that accrued after SCO implementation. There are too many tasks, too many connections, and too many uncertainties. Alliances are sustained by mutual need, a common objective, a willingness to share the benefits, and an atmosphere of trust.
Alliances are between people.
When adjustments must be made to an alliance, only the people who trust and understand each other will be able to make the adjustments in a way that maintains commitment. Only the people who share a common vision and have the enthusiasm to turn it into a reality will invest the appropriate amount of effort needed for an alliance to succeed. Customer-supplier alliances work best in organisations with a continuous improvement culture, long term views, and root cause attitudes toward issue resolution. Other requirements are a high degree of internal trust, robust team process, substantial delegation and empowerment, and a genuine openness towards outsiders. Supplier needs include stable and growing revenues, healthy margins, continued independence, and credible opportunities for new business.