The Benefits Of Supply Chain Management Collaboration

A successful global supply chain ultimately comes down to two things: quality and communication. Without one or the other, the chain will operate, but not at optimal levels. If the chain is missing both traits, it will eventually crumble underneath impossible to meet deadlines and ever-evolving end-customer needs.

At United Global Sourcing, we do more than connect you with a manufacturer or supplier. We establish a system that communicates with you on a 24-hour cycle, so you always know what’s going on.

In this post, we’re going to discuss the benefits of supply chain collaboration. It may seem counterintuitive in a supply chain to be transparent, but this is the secret the successful experts in the industry aren’t sharing. You may be concerned with fraud, waste, or costly mistakes. At UGS, we understand your concern. However, the only way to mitigate all three of those constants in supply chain management is to create candid communication and quality work within the chain. Transparency is the key to finding ways to tighten up a supply chain, improve processes, and increase profits.

Why Transparency Is Important To Supply Chains

It used to be that it didn’t matter where a product came from. All that mattered is that it arrived on time and in the condition promised. Now, as the market continues to globalize, customers, countries, and governments are more concerned with the origin of the products and the sources used to create it.

Supply chain managers fought this demand from the market for a long time, but once they started to become transparent with their operations a unique event took place. Customers, governments, and countries became more trusting of the supply chains fulfilling orders responsibility. Those who remained hidden took a hit in profits.

Transparency within the supply chain is just as important as transparency outside of the chain. The market wants to know what it’s buying, as if they’re the ones walking through a farmer’s market and choosing the produce themselves. As supply chain managers and business people, we have to give the market what it wants, or we will suffer.

Supply Chain Collaboration Benefits


As a supply chain becomes more transparent, it builds more trust with the customers and the participants making the chain function properly. The more trust that can be built internally and externally, the higher the morale of the staff and the market. Not only does the supply chain need to deliver the products to the customers, but it needs to do it in a responsible way to improve trust with customers. Once trust is established, the supply chain begins to collaborate, because the goal is bigger than any one moving part, leading to the innovation and creation of a better supply chain.

Inventory Management

Collaboration leads to all kinds of innovation, creation, and profit increases. One specific area that needs communication and collaboration the most is inventory management. Customers and vendors have an easier time monitoring inventory levels, which leads to trust. Keep your inventory levels just right, and it increases sales, because customers want to buy it before it runs out, and the vendors want to help get more product to sell. The supply chain is a sequence of events that a supply chain manager must optimize to increase profits and improve customer satisfaction.

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Data Sharing

It can be tough to think data is the key to collaboration. Imagine an entire supply chain that knows how the entire system operates. This means there are more eyes on the chain, and it can lead to some pretty neat innovations and creations. Trust and collaboration is what tightens up supply chains, as well as increase profits for those in the chain.

Supply Chain Streamlining

The first step to collaborating to streamline the supply chain is fostering relationships. Although supply chains can be seen through data, those who make the supply chain operate consistently are the ones that make the entire system successful. The second step is transparency. This allows for all parties involved in the supply chain to innovate and improve upon the current process. Finally, communication is paramount. Without candid conversations and reporting, supply chains will continue to operate and sub-optimal levels and leave a lot of money on the table.

Global Supply Chain Management Collaboration

At United Global Sourcing, we believe in collaboration through transparency and communication. If a supply chain is to operate efficiently, it needs more than a supply chain manager pulling the strings. It needs all parties involved on the same page, looking at the same data, and inputting creative, innovative ideas to make the chain better.

UGS fosters this through our commitment to quality and communication. Our mission is to grow your business with you. We do that through 24-hour communication cycles so you always know what’s going on. We also take pride in our quality of work we provide our customers. When you choose UGS, you get only the best. Contact us today to find your supply chain solution.