To build trust first requires that a firm demonstrate reliability in its operations, consistently performing as promised and meeting expectations. As noted above, however, reliability is only one aspect of building trust.
The second key requirement for building trust is full and frank sharing of all information necessary for the effective functioning of the relationship. In fact, information sharing and communication have been stressed throughout the text as the foundation for effective collaboration. Companies that hoard information or fail to disclose vital facts are not likely to be trusted.
Related to information sharing is explanation. Sometimes a company, because of competitive pressures, may be required to undertake actions that its supply chain partners may perceive as threatening. For example, a manufacturer opening new distribution channels might threaten existing retailers. Just such a situation arose when John Deere introduced a second line of lawn tractors and recruited Home Depot and other independent dealers, bypassing its traditional network. In such situations, trust may be maintained through thorough explanation of the rationale and business case that drove such a decision.
In many ways the entire subject of supply chain management is also a discussion of relationship management. The text has focused on issues related to logistical processes in the supply chain and managing these processes across company boundaries. Unique operating relationships among supply chain participants differ significantly in their intensity and extent of real collaboration. Power, leadership, conflict, cooperation, risk, and reward are all critical issues in relationship management. Resolution of these issues, however, ultimately depends upon the development of trust among supply chain participants.