Just as organizations need to coordinate internal functions for processes to run efficiently, they must do so across the supply chain. As the entire supply chain

is a collection of processes, rather than separate organizations and functions, the focus is to manage them across the entire supply chain. This requires

process thinking and requires managers to view the process as a system designed to satisfy customer needs.

There are two differing views on how to manage processes across the supply chain. The first is the transactional view that focuses on making supply chain

processes more efficient and effective based on quantitative metrics. This can be achieved through supply chain network redesign to promote speed and

eliminate redundancy, by standardizing transactions to improve efficiency, and by implementing better information technology to improve transfer of

information and improve accuracy.

The second, the relationship view, is focused on managing relationships across the supply chain. This involves managing relationships between people and

organizations and linking$-$up processes across organizations of the supply chain. For example, this might mean managing the order fulfillment process

throughout the entire chain coordinating with suppliers and measuring performance along the chain. This also means that managers from each organization

who are part of the process coordinate activities, work toward common goals, and have a common language.

Each approach to managing processes across the supply chain has its advantages. With the first, the focus is to make supply chain transactions more efficient

and effective based on measurable metrics. With the second, the objective is to structure interfirm relationships in the supply chain for the long$-$term benefit of

all the supply chain members. This requires a joint vision and partnering. Ultimately the best way to manage processes across the supply chain is to use both

approaches$-$focus on efficiency of transactions and create long$-$term interfirm relationships. Once again consider ASICS. It focused on both approaches. It

first brought efficiency to the distribution network by balancing flows through the network. It also relied on its relationship with its $3$PL provider to take over

some duties and handle the "overflow" of goods.