EXANDING SUPPLY CHAIN
As the markets continue to grow so as supply chain, Retailers and manufacturers are today increasing their operation beyond the national borders and through this, improving responsiveness on customer demands and on rapid change on economic conditions has become vital when engaging to globalization. Therefore to meet this requirement companies are working on establishing partnership and collaboration with foreign firms, suppliers to accommodate expansion of supply chain. Definition of Collaboration and Supply chain partnership
Firstly according to Maloni et al (2010) collaboration means that companies are involved on working together to meet one mutual objective while supply chain partnership means the relationship that is made between two independent entities in supply chain channels to achieve specific objectives and benefits. In most cases this partnership is formed having in mind the objectives of improving on financial and performance issues to both parties involved through ensuring that total costs of the firm are reduced, there is increased information sharing rather than being only concerned about the price. So expanding supply chain globally forces companies to for suppliers who will work with them on improving customer service, bring new technological advancement and new design. Establishment of partnership and collaboration in supply chain will ensure that the end user customer obtain high quality, (Lee et al, 2009) further elaborated that supply chain partnership will generate wealth and strong control,, barriers which most often exist between the supplier and the buyer will be reduced because as the supply chain expand globally quality standard are very high and establishing partnership will mean considering to have few reliable suppliers who provide optimum quality. Mcbeth et al (2010) notes that recognizing strategic buyer and supplier partnership in expanded supply chain is a necessary driver for successful global...
Please join StudyMode to read the full document