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Collaborative Supply Chains



All companies strive to reduce costs and increase revenue, especially in supply chains with slim margins. However, what often happens is that companies within a supply network seek to reduce their costs in an isolated fashion, the costs are pushed up or down the chain to other partners. Ultimately this drives up prices for everyone within the supply network as the company forced to absorb these costs will need to recover these costs. But there is a better way, collaborative supply chains.

Collaborative supply chains involve partners working together to collectively reduce costs overall, in a way which benefits everyone. These efforts are more effective in the long-run as no single company is forced to absorb these costs. Collaboration is especially effective for supply chains dealing with LTL shipping. When striving to collaborate, companies should focus on their areas of strength rather than areas they need to work on, to ensure an equal exchange of ideas and effort.

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