| Element |
Traditional management |
Supply chain management |
| Approach to inventory management |
Independent efforts |
Joint efforts to reduce inventory |
| Approach to total costs |
Minimize the firm's costs |
Achieving economic efficiency throughout the relationship |
| Duration of activity |
For a short period |
For a long period |
| volume of information exchange and monitoring |
Limited to current transaction |
As much as required for planning and monitoring purposes |
| The sum of the agreed levels in the relationship |
Single contact for transaction between each pair of contacts |
multilateral contacts depending on the level of connections and levels in firms |
| Joint planning |
According to the transaction |
Resistant |
| Correspondence of corporate philosophy |
It does not matter |
there is compatibility for at least basic relationships |
| breadth of activities of the main supplier |
It is great to be competitive and to reduce risk |
It gets smaller to improve coordination |
| relationship management |
Not required |
Required to focus on coordination |
| The amount of distribution of risks and rewards |
Everyone has their own risks |
Distribution of risks and rewards over a long period of time |
| speed of flow of operations, information and inventory |
“Warehouse” is inclined (storage, security and warehousing). It usually does not flow and is localized for double contact |
"Turnover rate" is available. Coordinating flows are also available |
