If you Seek Strategic Advantage!

Relational vs. Transactional


All businesses operate as part of a supply chain. Each organization might have a different place within the overall chain, but regardless of the size of the organization or its place in the chain, all organizations have to leverage their supply chains to create strategic advantage.



As depicted in the diagram above, there is a constant flow of products, money and information in the system. The purpose of Supply Chain Management is to create value, and this is achieved best when partners in the same chain work collaboratively, rather than each working to maximize their own gain. This requires balancing of competing interests. However, when managed well, the synergies make it possible for each partner to gain more than what they would have if they went it alone and focused only on their self-interests.


Gone are the days where the focus was about getting the right item at the right price, where companies dealt with their suppliers at arm’s length only at a transactional capacity. That approach never allowed for synergies, and the benefits, if any, were limited and short-lived. Instead, Supply Chain Management focuses on a relational approach with partners in both sides of the chain.


According to Association for Supply Chain Management (ASCM)[1], a well-managed supply chain will result in each partner achieving some or all of the benefits below:


· Increased Visibility

· Increased Velocity

· Decreased Variability

· Improved Market Knowledge

· Streamlined operations

· Improved Risk Management

· Increased sustainability


Every company has a supply chain, but not every company succeeds in managing their supply chain in a calculated way in order to make it work to their advantage. Verbum Consulting will help you manage the supply chain for your advantage, helping you increase competitiveness and customer satisfaction.  


Verbum Consulting, finding a tailored system for your needs


[1]APICS Certified Supply Chain Professional Learning System, Module 1 Book 1, 2016

Need more details? Contact us

We are here to assist. Contact us by phone, email or via our social media channels.

  • Verbum Twitter
  • Verbum LinkedIn
  • Verbum Facebook

Follow Us

More Info

© 2018 by Verbum Consulting

Website created by Visually Speaking