Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Supply Chain Collaboration - Next Steps and Beyond


Affiliations
1 Schneider Electric India, Bengaluru, Karnataka, India
     

   Subscribe/Renew Journal


Collaboration in supply chain is looked upon as the need of the hour. It focuses on the coordination and integration of processes between the partners of supply chain. Collaboration has further been extended to explore possibilities of integration between members of parallel supply chains. The extant literature suggests that supply chain collaboration has multiple benefits. It can help organisations acquire market intelligence and achieve economies of scale. The present paper analyses the different types of collaborations on the basis of current practices in the industry. Developing on this, it further elaborates on the areas within supply chain that can be explored for collaboration. The paper later showcases mathematical models for vertical and horizontal collaboration where it can be concluded that collaboration can have positive effects on collective profit of the partners. Horizontal collaboration is only seen from a viewpoint of manufacturing and much is still there to be explored in this field. The paper finally concludes by reiterating the fact that proper contracts must be in place while firms pursue collaboration. The paper also suggests a model on which a collaboration contract can be formulated.

Keywords

Vertical Integration, Horizontal Collaboration, Supply Chain, Contracts, Manufacturing, Logistics.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Future Supply Chain: Serving Consumers in a Sustainable Way. (May 27, 2008). Global Commerce Initiative and Capgemini, 34-39.
  • Anderson, D. L., & Lee, H. L. (1999). Synchronized supply chains: The new frontier. Achieving Supply Chain Excellence through Technology. San Francisco, CA: Montgomery Research
  • Argus, I. (2010). Horizontal collaboration. Retrieved from http://argusi.org/wp-content/uploads/2010/11/Horizontal-logistics-collaboration.pdf
  • Arsenyan, J., Buyukozkan, G., & Feyzioglu, O. (2011). Modelling collaboration formation with a game theory approach. World Congress on Engineering 2011. London: WCE.
  • Arya, B., & Lin, Z. (2007). Understanding collaboration outcomes from an extended resource-based view perspective: The roles of organizational characteristics, partner attributes, and network structures. Journal of Management, 33(5), 697-723.
  • Bahinipati, B. K., Kanda, A., & Deshmukh, S. G. (2009). Horizontal collaboration in semiconductor manufacturing industry supply chain: An evaluation of collaboration intensity index. Computers & Industrial Engineering, 57(3), 880-895.
  • Bjornfot, A., & Torjussen, L. (2012). Extent and effect of horizontal supply chain collaboration among construction SME. Journal of Engineering, Project and Production Management, 2(1), 47-55.
  • Boyce, W. S., Mano, H., & Kent, J. L. (2016). The influence of collaboration in procurement relationships. International Journal of Managing Value and Supply Chains, 7(3), 1-18.
  • Cachon, G., & Lariviere, M. (2001). Contracting to assure supply: How to share demand forecasts in a supply chain. Management Science, 47(5), 629-646.
  • Chiang, W. K., Chhajed, D., & Hess, J. D. (2003). Direct marketing, indirect profits: A strategic analysis of dual channel supply-chain design. Management Science, 49(1), 1-20.
  • Chong, A. (October 2016). SIAEC-Airbus joint venture to start operations by year end. Retrieved from https://www.flightglobal.com/news/articles/siaec-airbus-joint-venture-to-start-operations-by-ye-430888/
  • Chopra, S., & Meindl, P. (2007). Supply chain management: Strategy, planning and operation. Prentice-Hall, New Jersey.
  • Cruijssen, F., & Dullaert, W. (2005). Scared or careful? A comparative analysis of Dutch and Flemish LSPs attitudes towards horizontal cooperation [Dutch]. Bijdragen Vervoerslogistieke Werkdagen.
  • Cruijssen, F., Dullaert, W., & Fleuren, H. (2007). Horizontal cooperation in transport and logistics: A literature Review. Transportation Journal, 46(3), 22-39.
  • DHL Express. Horizontal Collaboration in the Healthcare Supply Chain. Retrieved April 10, 2015 from http://www.dhl.com/content/dam/downloads/g0/logistics/brochures/en_ horizontal_collaboration_in_healthcare.pdf
  • Dyer, J. H. (1994). Dedicated assets: Japan’s manufacturing edge. Harvard Business Review (November-December), pp. 174-178.
  • Hindustan Computers Limited. (2012). HiTech Supply Chain Advisory Framework. Retrieved from http://www.hcltech.com/white-papers/business-process-outsourcing/hitech-supply-chain-advisory-framework
  • Hines, P. (1998). Benchmarking Toyota’s supply chain: Japan Vs UK. Long Range Planning, 31(6), 911-918.
  • Hoberg, K., & Alicke, K. (October 2014). 5 Lessons for Supply Chain from the Financial Crisis. Retrieved from http://www.supplychain247.com/article/5_lessons_ for_supply_chains_from_the_financial_crisis
  • Holweg, M., Disney, S., Holmstrom, J., & Smaros, J. (2005). Supply chain collaboration: Making sense of the strategy continuum. European Management Journal, 23(2), 170-181.
  • Horn, K. (November 2012). The Product Life Cycle is in Decline. Retrieved from http://www.sourcingfocus.com/search/results/f2a4b6d95548423f48b4eb217d475de5/
  • Ince, H., & Ozkan, A. S. (2015). The role of supply chain collaboration on sustainable supply chain management. Journal of Management, Marketing and Logistics, 2(3), 223-231.
  • Ivanov, D., Sokolov, B., & Kaeschel, J. (2009). A multistructural framework for adaptive supply chain planning and operations with structure dynamics considerations. European Journal of Operational Research, 200(2), 409-420.
  • Kale, S. U. (2007, May). Global Competitiveness: Role of Supply Chain Management. Paper presented at the conference on Global Competition & Competitiveness of Indian Corporate.
  • Kaplan, R., & Norton, D. (1996). Linking the balanced scorecard to strategy. California Management Review, 39, 71-79.
  • Katz, M. (1986). An analysis of cooperative research and development. Rand Journal of Economics, 17(4), 527-543.
  • Knoben, J., & Oerlemans, L. A. G. (2006). Proximity and inter-organizational collaboration: a literature review. International Journal of Management Review, 8, 71-89.
  • Kumar, G., Banerjee, R. N., Meena, P. L., & Ganguly, K. K. (2017). Joint planning and problem solving roles in supply chain collaboration. IIMB Management Review, 29, 45-57.
  • Lambert, D., Emmelhainz, M., & Gardner, J. (1996). Developing and implementing supply chain partnerships. International Journal of Logistics Management, 7, 1-16.
  • Lapide, L. (2001). New developments in business forecasting. Journal of Business Forecasting Methods and Systems, 20(4), 11, 12 and 36.
  • Levin, R., Klevorick, A., Nelson, R., & Winter, S. (1987). Appropriating the returns from industrial R&D. Brookings Papers on Economic Activity, 3, 783-820.
  • Liao, S. H., & Kuo, F. I. (2014). The study of relationship between the collaboration of supply chain, supply chain capabilities and firm performance: A case of the Taiwan’s TFT-LCD Industry. International Journal of Production Economics, 156, 296-304.
  • Liker, J., & Wu, Y. C. (2000). Japanese automakers, U.S. suppliers and supply-chain superiority. MIT Sloan Management Review, 42(1), 81-93.
  • Luxford, H. (February 2015). Airbus & HAECO Team Up on Training. Retrieved from http://www.mro-network.com/maintenance-repair-overhaul/airbus-haeco-team-training
  • Majewski, S. K. (2008). How do Consortia Organize Collaborative R&D? Paper presented at Annual Conference of the Massachusetts Institute of Technology. Boston, Massachusetts, USA.
  • McLaren, T. S., Head, M. M., & Yuan, Y. (2002). Supply chain collaboration alternatives: Understanding the expected costs and benefits. Internet Research: Electronic Networking, Applications and Policy, 12(4), 348-364
  • Mitra, S., & Webster, S. (2007). Competition in remanufacturing and the effects of government subsidies. International Journal of Production Economics, 111(2), 287-298
  • Nooteboom, B. (1999). Inter-firm alliances: Analysis and design. London: Routledge.
  • O’Reilly, J. (March 2015). Rethinking the Global Supply Chain. Inbound Logistics. Retrieved from http://www.inboundlogistics.com/cms/article/rethinking-the-global-supply-chain/
  • Petruzzelli, A. M. (2009, June). University-Industry R&D Collaborations: A Joint Patents Analysis. Paper presented at Summer Conference of the Copenhagen Business School, Frederiksberg, Denmark.
  • Phelps, C. C. (2010). A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation. Academy of Management Journal, 53(4), 890-913.
  • Razzaque, M. A., & Sheng, C. C. (1998). Outsourcing of logistics functions: A literature survey. International Journal of Physical Distribution & Logistics Management, 28(2), 89-107.
  • Ring, P. S., & Van de Ven, A. H. (1994). Development processes of cooperative interorganizational relationships. Academy of Management Review, 19(1), 90-118.
  • SAP. (2007). Supply chain collaboration: The key to success in a global economy. Retrieved from http://www.lpsconsulting.com/downloads/Supply %20 Chain %20 Collaboration %20%20 The %20 Key %20 to %20 Success%20 in %20a%20 Global %20 Economy. pdf
  • Shepperd, E., & Seidman, D. (2001). Ocean shipping alliances: The wave of the future? International Journal of Maritime Economics, 3, 351-367.
  • Simatupang, T. M., & Sridharan, R. (2002). The collaborative supply chain. International Journal of Logistics Management, 13(1), 15-30.
  • Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., & Shankar, R. (2008). Designing and managing the supply chain: Concepts, strategies and case studies. McGraw Hill Education, India.
  • Sridharan, R., & Simatupang, T. M. (2013). Power and trust in supply chain collaboration. International Journal of Value Chain Management, 7(1), 76-96.
  • Tella, E., & Virolainen, V. M. (2005). Motives behind purchasing consortia. International Journal of Production Economics, 93-94, 161-168.
  • Verstrepen, S., Cools, M., Cruijssen, F., & Dullaert, W. (2005). A framework for horizontal cooperation in logistics [Dutch]. Bijdragen Vervoerslogistieke Werkdagen.
  • Waller, M., Johnson, M. E., & Davis, T. (1999). Vendor managed inventory in the retail supply chain. Journal of Business Logistics, 20(1), 183-203.
  • Zigiaris, S. (2000). Supply Chain Management. INNOREGIO Paper. BPR Hellas SA

Abstract Views: 278

PDF Views: 1




  • Supply Chain Collaboration - Next Steps and Beyond

Abstract Views: 278  |  PDF Views: 1

Authors

Yaseen Kazi
Schneider Electric India, Bengaluru, Karnataka, India
Supriya Ranjan Mitra
Schneider Electric India, Bengaluru, Karnataka, India

Abstract


Collaboration in supply chain is looked upon as the need of the hour. It focuses on the coordination and integration of processes between the partners of supply chain. Collaboration has further been extended to explore possibilities of integration between members of parallel supply chains. The extant literature suggests that supply chain collaboration has multiple benefits. It can help organisations acquire market intelligence and achieve economies of scale. The present paper analyses the different types of collaborations on the basis of current practices in the industry. Developing on this, it further elaborates on the areas within supply chain that can be explored for collaboration. The paper later showcases mathematical models for vertical and horizontal collaboration where it can be concluded that collaboration can have positive effects on collective profit of the partners. Horizontal collaboration is only seen from a viewpoint of manufacturing and much is still there to be explored in this field. The paper finally concludes by reiterating the fact that proper contracts must be in place while firms pursue collaboration. The paper also suggests a model on which a collaboration contract can be formulated.

Keywords


Vertical Integration, Horizontal Collaboration, Supply Chain, Contracts, Manufacturing, Logistics.

References