COMING TO AN UNDERSTANDING

UNDERSTAN

- DAMIEN MARTIN

When supply chains span the globe, there are many factors that go into keeping them moving along smoothly. There are the logistics of moving components all around, gathering them in the same place for assembly, and sending the finished product on to the customer. There are seemingly endless data points that tell a lot about performance, measuring just about anything supply chain managers could care to know. As immensely helpful as all that is, there’s a human element often overlooked that is also critical to success. As supply chains cross borders, they encounter different cultures, each with their own ideas about how things should be done. If not navigated well, these differences can be as operationally damaging as any other disruption that arises.

INCREASING VISIBILITY

Data analytics have many stories to tell about how well supply chains are operating. With a renewed emphasis on visibility into all aspects of the chain, technology integration and info sharing with partners is increasingly important.

But different cultures have different ideas around openness, cybersecurity, and exactly how much to share even with business partners. Coming to agreement on that integration and sharing requires patient and deliberate communication.

“The increasing number of global interactions does not necessarily lead to adaption of similarities among organizations, because studies show that with greater globalization comes more tribal behavior, and thus cultural behavior characteristics are becoming more distinctive,” wrote Mathias Doetzer in The role of national culture on supply chain visibility: Lessons from Germany, Japan, and the USA.

“The cultural dissimilarities among these entities can be a barrier for international operations, resulting in reduced profits for both parties, based on limited trust and conflictual negotiations.”