Communication in Virtual Supply Chain Teams

As manufacturers require closer and closer links to geographically more diverse suppliers in order remain competitive, virtual teamworking is beginning to look attractive. However, the full benefits which closer communication are meant to bring require informal and free interaction among team members in a way which communications technology could block. We use case studies of two supply chain teams trying desktop conferencing technology for collaborative work to recommend how best to introduce virtual teamworking. 1 INTRODUCTION The globalization of the marketplace has increased competition and made it necessary for manufacturers to develop new products and cheaper production processes quickly. This places pressure on the supply chain. Traditionally, an original equipment manufacturer (OEM) has simply faxed specifications for parts to a range of potential suppliers and accepted the lowest bid (Jackson, 1985). Such techniques work in an environment where the market is certain and competition among suppliers is high (Gattorna and Walters, 1996), but in rapidly changing business environments, longer term partnerships between companies can have the advantage of allowing the kind of free access to information and cooperation on design. This in turn will lead to increased competitiveness by promoting changes in design or in production processes which improve the value for money of the final product (Carlisle and Parker, 1989). Supply chain partnerships effectively institute cross-company teamworking, in which the two companies involved work out shared goals which will benefit everyone involved.