The panel consisted of Tom Alloway, process control coordinator for Nova Chemicals, Wilbert Long, vp commodity management for Alcoa, Rory Johnson, director of design and process engineering for Weyerhauser, Larry Jackson, vice president of strategy and sourcing for Fluor, and Jerry Gipson (frequent Control contributor and director of engineering solutions technology center for The Dow Chemical Company. Dick Hill rustled up a couple of really good quotes to start things off. He quoted famed 20th century radio personality Fred Allen as saying, "It is probably not love that makes the world go around, but rather those mutually supportive alliances through which partners recognize their dependence on each other for the achievement of shared and private goals." And he followed up with W. Edward Deming's famous, "It is not necessary to change. Survival is not mandatory." "You have to create exitement," said Fluor's Larry Jackson, "and a corporate culture around willingness to collaborate. The key is people. You need to have a sales and implementation strategy to get your message across internally, you have to have a plan for managing through adversity because there always is adversity, and you have to show that this collaboration creates sustainable value." Fluor's Jackson agreed. "We did a project, and there was plenty of blame to go around. We were to blame, the customer was to blame and ABB had its own share of blame coming. But we were able to sit down and calmly discuss the problems with ABB and they came to the plate and solved the problem. Instead of nearly ending our relationship, it strengthened it, because now we know what they will do in a crisis." Most end users do not understand that efficiency in the selling process directly translates to lower prices. Why? "Cost of sales" is generally a larger component of cost than manufacturing cost, even fully burdened cost, is. If suppliers and end users collaborated to reduce the cost of sales, it would be possible to reduce prices while keeping profits at the same level. What a concept!
Source: from the department of "the fine art of collaboration..."