What Is a Collaborative Supply Chain?

An effective SCM system should coordinate all the business activities among partners in a timely manner. However, the complexity and uncertainty of business operations and the cost of a sophisticated system with its supportive technologies make it difficult for an enterprise to deploy a fully collaborative SCM system at the early onset. Most enterprises usually take an evolutionary approach to structure relationships with customers and suppliers; they accordingly take the same path to deploy SCM systems. Byrnes (2003) articulates a view of a typical enterprise's evolving role in a supply chain: “The company starts as stable supplier, evolves into a reactive supplier, then an efficient reactive supplier, then ...

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