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Keywords
Supply chain management, Channel relationships
Abstract
Despite its infancy, some authors are already suggesting that the writing may be on the wall for supply chain collaboration. It has been reported that supply chain collaboration has proved difficult to implement; there has been an over-reliance on technology in trying to implement it; a failure to understand when and with whom to collaborate; and fundamentally a lack of trust between trading partners. This paper proposes that a supply chain segmentation approach, based on customer buying behaviour and service needs, is the most appropriate context for collaboration. The paper also proposes the need for a greater understanding of the elements that make up supply chain collaboration, and in particular how the relevant cultural, strategic and implementation elements inter-relate with each other.
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Introduction
Collaboration, in the context of the supply chain, is still relatively embryonic, emerging in the mid-1990s in the most recognizable form of collaborative planning forecasting and replenishment (CPFR) (VICS, 1998)[1]. It has been suggested that prior to the emergence of CPFR organizations were practicing less advanced forms of collaboration in the form of vendor managed inventory (VMI) and continuous replenishment programmes (CRP) (Ireland and Bruce, 2000; Barratt, 2002).
With the widely heralded demise of e-business coupled with the current harsh economic climate, some authors are suggesting the end of the road has been reached for supply chain collaboration (Fawcett and Magnan, 2002; Sabath and Fontanella, 2002). It has been suggested that:
* supply chain collaboration has proved difficult to implement (Sabath and Fontanella, 2002);
* there has been an over-reliance on technology in trying to implement it (McCarthy and Golocic, 2002);
* a failure to differentiate between whom to collaborate with, i.e. a segmentation of customers and or suppliers (Sabath and Fontanella, 2002); and
* fundamentally a lack of trust between trading partners (Ireland and Bruce, 2000; Barratt, 2002).
Collaboration is a very broad and encompassing term and when it is put in the context of the supply chain it needs yet further clarification. Many authors when talking about collaboration cite mutuality of benefit, rewards and risk...