The Role Of Stakeholders In Supply Chain Management

Supply Chain Management (SCM) department encounters a number of different stakeholders. Many different working relationships take place within each individual work on, from colleagues to clients, stakeholders, and suppliers. The internal supply chain that delivers the service is complicated and requires the co-ordination and co-operation of individuals and teams who have different skills and priorities. Hence, understanding stakeholder needs and working effectively with them is critical to the success of the procurement team. Cleland (1995: 151) recognised the need to develop an organisational structure of stakeholders through understanding each stakeholder’s interests, and negotiating both individually and collectively to define the best way

Building good working relationships, it encourages team works well together and allows staff members to feel more comfortable in offering suggestions to solve company issues. A leader could also improve their decision-making by having a wider access to information about supply and procurement. With good relationship with stakeholders could increase the organizational effectiveness to achieve the goals. This indirectly will improve corporate reputation and the avoidance of the unnecessary negative press.

Several characteristics make up good, healthy working relationships: Trust, mutual respect, mindfulness, welcoming diversity and open communication. (Mind Tools) Figure 1 Characteristic of Positive Working Relationship

Communicate Effectively with Stakeholders

Organisation needs to communicate their objectives well both internally and externally. The communication should be two-way conversation, relevant, regular and consistent. Initiated repeated interactions and communication can build relationship with the person working with. It helps to get to know each other, personally and professionally, indirectly establish a closer connection that can greatly create

Commitment and Trust

Trust is the foundation of every good relationship and helps to create a healthy work environment. According to Heathfield (2002), trust is the necessary precursor to the following:

• Feeling able to rely upon another person

• Cooperating as a group

• Taking thoughtful risks

• Experiencing believable communication

Once trust is established, it enables the work and communication more effective. They will be committed to compromise and work towards the share goals. Hence, managers have a better opportunity to accomplish the company’s goals. Figure 2 Trust Equation

The company could build trust through:

• Form teams to solve real work issues and improve the real work processes

• Regular team meetings to review project, progress or concern

• Team building activities

In addition, the company should encourage mutual respect among each other. When people respect the people that you work with, you value their input and ideas, and they value yours. Working together, you can develop solutions based on your collective insight, wisdom and creativity. Practicing a deeper level of awareness and taking responsibility for your words and