What is Supply Chain Collaboration ?

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Today’s business is more complex and widespread as compared to previous decades. The manufacturers are more dependent upon their customers and hence need to align w.r.t the changes to customer demand. Same equation persists across the supply network. If the final demand of the end user changes then this change affects backwards till the raw material suppliers.

Just imagine if it’s possible for the entire supply network to work as a team and respond to the dynamicity of the end-user demand, then it’s a big advantage for the entire supply network as well as the end-user.

This is where ‘Supply Chain Collaboration’ or ‘Supply Network Collaboration’ comes into picture. So I would define ‘Supply Chain Collaboration’ as- Collaboration, at both planning & execution level, between 2 or more entities of the supply network in order to bring more values to all the business partners involved.

As I mentioned collaboration can be done at various phases of the value network. The methods and objectives also vary a lot depending upon the industry and business model. Many tools are available in today’s market to cater this requirement. Some instances are SAP, JDA, Infor etc.

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