Collaboration In Supply Chain: Autonomous Firms Plan To Work Together

Collaboration in Supply Chain
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In supply chain management, collaboration occurs when two or more autonomous firms plan to work together in order to execute supply chain operations in a better way (Bak, 2007). It’s safe to say that effective collaboration is required to execute new and innovative ideas, to plan things properly and to deliver substantial benefits or advantages to two or more parties. The collaboration in supply chain planning or management can be of two types: horizontal collaboration and vertical collaboration. Horizontal collaboration happens between two or more corporations that are working at the same level in the supply chain. This allows them to share work with each other in order to get more and more advantages. In addition, they can collaborate or cooperate to achieve a common goal. On the other hand, vertical coll...