Institute for Collaborative Working (Including: Chakkol, Mehmet and Johnson, Mark). (2015) Benefits realisation from collaborative working. London, UK: University of Warwick, Warwick Business School, Operations Management Group & Institute for Collaborative Working.

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Abstract

When we began this research programme on behalf of ICW into the Benefits of Collaborative Working our premise was that the principal driver behind collaboration would be cost reduction based on increased efficiency through better process integration. This was, to some extent, borne out by our investigations into past research of the subject which focused on either client or supplier-based engagement. It was equally apparent that the challenges came from mistrust of this single objective and limited consideration for the wider implications of the end-to-end or holistic perspective of multiple organisations - at various levels - being “joined up”. This premise was quickly challenged when we engaged with Senior Executives in a series of one-to-one interviews. What emerged was a broader perspective where a more open and committed approach fostered greater confidence on both sides resulting in more productive engagements, allowing a flow-through supply chains to end users. Increased visibility leads to greater reliability and more constructive problem solving which in turn reduces perceived levels of risk. More inclusive relationships result in more business, enhanced scope, more innovation and greater certainty of outcomes on all sides of the relationship. From the research, interviews, survey and case studies, some of which are contained within this report, we have clearly identified a range of tangible benefits achieved through collaborative working including: Improved business and operational performance. Increased business winning. Enhanced risk management. Innovation. Multi-million pound efficiencies. Increased client confidence and repeat business. New product development. Growing interdependency as a result of more complex, high risk, business together with increasing global trade is focusing industry and government on the need to invest in developing more integrated business relationships. The research detailed within the report indicates that drivers and trends are focused on building confidence in outcomes as opposed to the historical approach focused on cost reduction. As the survey discovered, cost reduction featured lowest in terms of collaborative working drivers. The challenge for organisations is in building commitment and sustainable relationships which ensure they do what they promise. Organisations managing complex and extended supply chains rate managing risk as a key factor; the research also highlights that business relationship risk is now an additional major consideration. The most significant future challenge is to change traditional organisational cultures to accept more readily collaborative business models. This highlights the need to identify and further develop competencies and skills to harness collaborative working. There is a clear recognition that the adoption of a more systematic approach, such as BS 11000 and its future iteration as an International Standard (ISO 11000) scheduled for publication autumn of 2016, integrated with supportive collaborative processes and systems will underpin the business environment where collaborative working can be seen as a competitive advantage.

Item Type:	Report
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Warwick Business School > Operations Management Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	Management, Contracts, Risk management , Customer relations , New products
Publisher:	University of Warwick, Warwick Business School, Operations Management Group & Institute for Collaborative Working
Place of Publication:	London, UK
Official Date:	November 2015
Dates:	Date Event November 2015 Published
Number of Pages:	34
Status:	Not Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access
Funder:	Great Britain. Institute for Collaborative Working
Related URLs:	Open Access File Organisation

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