In his new book, The SPEED of Trust, Stephen M. R. Covey challenges the age-old assumption that trust is merely a personal concern. He argues that trust can influence the economic success of companies in a global economy. Covey expanded on the importance of trust to supply chains in this excerpt from an interview with Group Editorial Director Mitch Mac Donald.
Q: Why should companies work on building trust in their supply chain relationships?
A: Instead of being just a social virtue, trust is an economic driver. In today's global economy, where technology and globalization are changing everything, the need to build and establish relationships of trust in a supply chain is critical. This is especially true because we are crossing borders, and with multiple technologies it is more critical than ever before that we collaborate.
Logistics, by definition, requires partnering, collaboration, interdependence, and teaming. Those things will thrive or die based upon the presence or absence of trust.
You do not partner without trust. You don't really collaborate without trust. You might cooperate or you might coordinate if there is no trust, but real collaboration and partnering requires a level of trust and understanding that will extend to everything else once you have established that.
It's important that we build relationships of trust so that we can repeat actions again and again and again, faster and faster, as opposed to delivering the result this time but doing it in a way that is diminishing the trust.