Collaboration Within the Supply Chain

A fundamental challenge for supply chain managers is how to compete effectively by coordinating and integrating business activities in the face of globally dispersed operations. Supply chain collaboration is often deemed as a critical strategy for ensuring that all independent firms work cooperatively to create a cohesive, singularly competitive supply network capable of improving overall performance. This view stems from the fact that it enables two or more independent supply chain partners to develop long-term relationships with the common goal of integrating and coordinating processes in anticipation of sharing success and benefits. A typical supply chain is a complex and multistaged network consisting of several firms and multiple functions. The complexity of these supply chain networks has emphasized the importance of supply chain collaboration more than ever in this century, particularly in the advent of the COVID-19 pandemic. The purpose of this chapter is to discuss supply chain collaboration and its role in enhancing business performance. It begins by defining supply chain collaboration; it then proceeds to discuss the various types of collaborations, their benefits, and their importance, before delving into the various levels of collaboration and emerging issues. The chapter concludes with a discussion of the implications of collaborations for business management.