4. Differentiations between co-creation, coproduction and cooperation

4. Differentiations between co-creation, coproduction and cooperation:

A. Conclusions of the concepts:

We distinguish the concepts into three categories:

• Co-creation is joint to create partnership between two or more startups or companies. We understand this because co-creating is to belong to the same group and focus on creating product or service from a single company or Startup. Therefore, the Project will be divided into shares of the company. This can arise between companies who collaborate as partners, which, at any given time, may be focused on a single project. Like this, efforts will be focused and the Project will be taken much earlier, in this kind of adventure is often at risk. An example of this kind of business is the joint between Tesla and Solarcity to fabricate the first solar roof in the world.
• Co-production can be included from the point of view of supply chain management of a company. Companies like H&M use, ant thanks to them, they make his added value for the market. For example: H&M uses supplies who co-produce standard clothes and then, by studying market areas that they realize, in other third companies, they give the order to ornament this clothes in this way or other way, by the fashion of the moment or of the place, this is, by of demand. Then they lead a business of coproduction between several actors. H&M leads through the customer feedback of the moment and of the place. Like this, they are rearming the logistic to avoid running out stock in stores and they ensure a fair shipping just in time and stock 0.
• Cooperation or collaboration, is the most given in the Startups, nowadays. It is a way to accelerate to put the product or service in the market. Between the resources of the Startup and Partners achieve to put the added value in the market as soon as possible. Like this, they quickly obtain the feedback and they make decision in consequence. The last thing is strongly joint to the concept of move your influence circle, to create the business network and to generate the called “favours chain”. A great example of this can be the collaboration between Coke + Helnz to develop more sustainable packaging; NASA + Lego to become Lego construction in an educational program; Mercedes Benz + Facebook to develop de the social driving; etc.

B. Business applications: Collaborative Planning Forecasting Replenishment (CPFR). Concept coined in Toyota company.

[3 Li, Ling. Supply Chain Management: Concepts, Techniques and Practices enhancing the value through collaboratio. World Scientific, 2007. Daniel T Jones and James P. Womack. Lean thinking. Gestion 2000. Liker, Jeffrey K. The Toyota way.]

One of the major applications of these concepts is the Business method of Collaborative Planning Forecasting Replenishment (CPFR). It consists to use, of a synchronized way and effective, collaboration and co-production between business. An example of this is the talked about H&M.

Figure 15: CPFR. Desarrollo conceptual de la logística. By Bryan A. Salazar

These relationships are based on an exchange of information between partners. It is necessary, for this, to have a strengthened trust relationship. They should make a plan of objectives, strategies, tactics and measured indicators together; to thereby, we obtain flexible organizations succeed in a fluctuating market. Therefore, there will be a common focus on the final customer, they stablish processes listening to the final costumer from each link in the chain of cooperation and co-production.

The example of H&M is one of the clearest when we are talking about CPFR because it is a collaboration between several companies totally synchronizing and they depend, in their decisions, from the customer feedback. In the following picture, with his explanation, we are going to understand that:

Figure 16: CPFR of H&M. Own source.

In this case, the CPFR (Collaborative Planning Forecasting Replishment) is defined, by:

FROM THE CUSTOMERS:

• 1-2. Final Customer ask the order to the retail or web directly to the “CALL OFF WAREHOUSE” in Hamburg.
• 2-3.Form “CALL OFF WAREHOUSE” in Hamburg ask the order to Production Center in Stockholm.
• 3-4.From the Production Center and Matrix in Stockholm design the CUSTOMIZED GARMENTS with the DESIGNERS key partners.
• 3.5. From the Production Center with the designers ask the order to Supplier of EU.

FROM THE SUPPLIERS IN ASIA

• 3-9.     From the Production Center ask the order to the RAW MATERIALS.
• 9-8.     The RAW MATERIALS arrive to the SUPPLIERS IN ASIA. This suppliers manufacture the STANDARD GARMENTS.
• 8-7.     The STANDARD GARMENTS arrive to “CALL OFF WAREHOUSE” in Hamburg.

MIX, DECOUPLING POINT

8-7-2-3-6-1. Through Selling estimates, the Production center and Matrix in Stockholm buy STANDARD GARMENT to the suppliers in Asia.

This is just one of the real applications of these processes. The conclusion is that if one row alone and certainly will arrive far, but if you row with partners you will arrive there before.