Trust Enabled Supply Networks Uncovering the trust-building secrets - - PowerPoint PPT Presentation

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Trust Enabled Supply Networks Uncovering the trust-building secrets - - PowerPoint PPT Presentation

Mar 28, 2023 49 likes •384 views

Third Annual Symposium on Supply Chain Management Toronto, September 2005 Trust Enabled Supply Networks Uncovering the trust-building secrets of highly collaborative supply chains. Alex Todd, President & CEO, Trust Enabling Strategies

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Trust Enabled™ Supply Networks

Uncovering the trust-building secrets of highly collaborative supply chains.

Alex Todd, President & CEO, Trust Enabling Strategies AlexTodd@TrustEnablement.com http://www.trustenablement.com/

Third Annual Symposium on Supply Chain Management Toronto, September 2005

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Similar to transporters, food replicators can synthesis food from raw organic material via matter/energy conversion. Food Replicator

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Business on Demand

“An enterprise whose business “An enterprise whose business processes processes --

  • - integrated end

integrated end-

  • to

to-

  • end

end across the company and with key across the company and with key partners, suppliers and customers partners, suppliers and customers --

  • can respond with speed to any

can respond with speed to any customer demand, market customer demand, market

  • pportunity or external threat.”
  • pportunity or external threat.” -
  • IBM

IBM

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Leaders Want Nimble Organizations

Change in Demand Change in Supply Change in Price Change in Customer Preferences Fluctuations in Capital Markets Fluctuations in Interest Rates Fluctuations in Oil Prices How can my business respond on demand?

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Speed to Seize New Opportunities

"Trust equals speed…. Once people have stopped worrying about what the other guy's agenda is, you can make changes much more quickly” – David Berdish, Organizational Learning, Ford “…the key intervening variable in achieving organizational flexibility is the level of trust ….” – Lorenz, The Helen Kellogg Institute for International Studies (1990) “…distrust is the highest barrier to implementing advanced e- business applications, such as supply chain management and product design collaboration systems that link companies to their suppliers, customers and business partners.” – National Post (May 2002), based on survey by NerveWire.

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“Of all the elements critical to managing supply chains, trust is one of the most commonly cited elements, yet one of the most difficult to measure.”

  • Handfield, R.B., and Bechtel, C. (2004) “Trust, power, dependence, and

economics: can SCM research borrow paradigms?”, Int. J. Integrated Supply Chain Management, Vol. 1, No. 1, 2004.

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Time Value

High Moderate None

Communicative Coordinated Trust Gap

Agility

Supply Chain Configuration Maturity

Collaborative Co-opetitive

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Value of Trust for Procurement

Seller

! Fewer invoice disputes ! Fewer returns ! Reduced logistic-related labour ! Lower inventory requirements ! Higher "up-sell" opportunities ! Differentiate on quality and depth vs. product ! Faster collection times

Buyer

! Reduced purchasing effort ! Fewer invoice disputes ! Better error handling ! Fast inventory turnaround ! Lower inventory levels ! Improved A/P days ! Improved contract compliance

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“Buyers tend to be reluctant players”

Robert E. Speckman

" Shared values " Common vision " Merits of closer ties " Sharing of key information " Supply chain champion " Seizing opportunities to exploit expertise/capability throughout the entire supply chain " Belief that competitive success depends on the entire supply chain moving in unison

RISK MANAGEMENT

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Trust Enablement vs. Risk Management

Trust Enablement

" Trust-based " Optimistic " Offensive " Active " Stakeholder-oriented " Bonus: Golden Rule compliant

Risk Management

# Control-based # Pessimistic # Defensive # Passive # Organization-oriented # Loss: Isolated self-interest

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Trust = Acceptable Uncertainty

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Trust the information, despite its source.

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VS.

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eBay Builds Confidence

Trust Ensuring Services Trust Establishing Services

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eBay Builds Confidence

Trust Ensuring Services Trust Establishing Services

  • 1. Authoritative Sources

$

ID Verify from Equifax

$

Product Opinions & Grading

$

Product Appraisals

$

Privacy Policy

$

TRUSTe seal

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eBay Builds Confidence

Trust Ensuring Services Trust Establishing Services

  • 1. Authoritative Sources

$

ID Verify from Equifax

$

Product Opinions & Grading

$

Product Appraisals

$

Privacy Policy

$

TRUSTe seal

  • 2. Experiential Sources

$

Feedback Forum

$

Tradenable escrow

$

Product authentication

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eBay Builds Confidence

Trust Ensuring Services Trust Establishing Services

  • 1. Authoritative Sources

$

ID Verify from Equifax

$

Product Opinions & Grading

$

Product Appraisals

$

Privacy Policy

$

TRUSTe seal

  • 3. Ability

$

Industry practices (SSL, etc.)

  • 2. Experiential Sources

$

Feedback Forum

$

Tradenable escrow

$

Product authentication

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eBay Builds Confidence

Trust Ensuring Services Trust Establishing Services

  • 1. Authoritative Sources

$

ID Verify from Equifax

$

Product Opinions & Grading

$

Product Appraisals

$

Privacy Policy

$

TRUSTe seal

  • 3. Ability

$

Industry practices (SSL, etc.)

  • 2. Experiential Sources

$

Feedback Forum

$

Tradenable escrow

$

Product authentication

  • 4. Motivation

$

Policies (comprehensive)

$

SafeHarbor investigations

$

Disallowed products

$

SquareTrade dispute resolution

$

VeRO notice of IP infringement

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eBay Builds Confidence

Trust Ensuring Services Trust Establishing Services

  • 5. Trust Empowerment

$

Identify reliable providers of feedback

  • 1. Authoritative Sources

$

ID Verify from Equifax

$

Product Opinions & Grading

$

Product Appraisals

$

Privacy Policy

$

TRUSTe seal

  • 3. Ability

$

Industry practices (SSL, etc.)

  • 2. Experiential Sources

$

Feedback Forum

$

Tradenable escrow

$

Product authentication

  • 4. Motivation

$

Policies (comprehensive)

$

SafeHarbor investigations

$

Disallowed products

$

SquareTrade dispute resolution

$

VeRO notice of IP infringement

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eBay Builds Confidence

Trust Ensuring Services Trust Establishing Services

  • 5. Trust Empowerment

$

Identify reliable providers of feedback

  • 1. Authoritative Sources

$

ID Verify from Equifax

$

Product Opinions & Grading

$

Product Appraisals

$

Privacy Policy

$

TRUSTe seal

  • 3. Ability

$

Industry practices (SSL, etc.)

  • 6. Risk Transfer

$

User Agreement

$

Fraud Protection Insurance

$

PayPal Buyer Protection

  • 2. Experiential Sources

$

Feedback Forum

$

Tradenable escrow

$

Product authentication

  • 4. Motivation

$

Policies (comprehensive)

$

SafeHarbor investigations

$

Disallowed products

$

SquareTrade dispute resolution

$

VeRO notice of IP infringement

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Isn’t trust different for a supply chain?

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Blazer Barn

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Blazer Barn

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Proctor & Gamble

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Proctor & Gamble

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Toyota

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Linux

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Thank you.

Alex Todd +1 416.487.1497 AlexTodd@TrustEnablement.com http://www.TrustEnablement.com