Understanding the Meaning of Supply Chain Collaboration

Understanding the meaning of supply chain collaboration
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Statement of the Author’s Purpose
A supply chain is an area that is inevitable to all business organizations. There are various levels of supply and each level is crucial. Yet, it is not practically possible to have an organization that can meet all these levels by themselves (Mark, 2004). This means that there is need to engage other players who can occupy the other levels of the supply chain. It is of utmost importance to ensure that there is proper collaboration in the various levels of supply chain. This is the only guarantee that the entire chain will be functional. The author of the article ‘understanding the meaning of supply chain collaboration’ argues that for a supply chain to be effective as intended there is need to have fragmentation at various levels. This will mainly be informed by the behavior of customers. Further, there is a proposal that organizations should have a clear understanding of the actual meaning of collaboration in supply chain. It could be that the inability to fully appreciate the meaning of this collaboration has led to ineffectiveness.
Relevant Theory
In regard to this article, the most relevant and applicable supply chain management theory is the network perspective theory. This theory focuses on the kind of relationship that a business organization has with all its networks including the partners with whom they have a direct link. The theory emphasizes on the need to strengthen and have a firm chain of supply that is reliable. According to this theory, a business organization will only have a competitive edge if only the supply chain is strong, effective and well implemented. As such, this theory has huge emphasis on the establishment of relationships that are firm and reliable.
Background
Although collaboration in supply chain management appears to be a familiar term in business circles, it is now emerging that it is not a well understood concept. Majority of those in business are yet to have a proper grasp of what the concept is about. For the collaboration to be effective, there is need for businesses to understand reasons for collaboration. The main reason for collaboration is to increase the efficiency of the functioning of the various channels. The recognitio...