Supply chain collaboration: the key to value creation

Abstract

As global markets grow increasingly efficient, competition no longer takes place between individual businesses, but between entire supply chains. Collaboration can provide the competitive edge that enables all the business partners in a supply chain to prevail and grow. This paper presents a framework for customer‐supplier collaboration that facilitates effective and efficient supply chain operation. The paper reveals that the level of involvement of customers and suppliers differs across different supply chain processes and also across different sectors. While the involvement of customers is high in demand management and product development, the involvement of suppliers is high in transportation and inventory management processes. The paper also reveals that about 50 percent of the organizations surveyed indicate that suppliers and customers have little or virtually no role in the demand management, inventory management, and product development processes.