Posted in Operations and Supply Chain Terms, Total Reads: 409

Definition: Co-Destiny

Co-destiny is a strategic relationship where the organizations involved choose to share common destinies in all aspects of their business, for mutual benefit. The relationship relies on total trust and both organizations become fully interdependent and as such they succeed or fail together.

Organizations may be supply partners, or members of a supplier association. All will invest a high degree of trust and cooperation. The relationship can be described as ’win-win’.


Example- A situation where Production Company helps its supplier in optimizing its delivery system is ideal case of Co-destiny. Optimized delivery system for raw materials can mean reduced transportation costs thus decreasing over all costs of raw material thus increasing margins for both parties. Optimization can also mean reduced delivery time, critical in case of ‘Just in Time’ manufacturing model, reduced Days Sales Outstanding in case where transportation time is reduced by number of days.



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