Is collaboration paying off for firms?

Collaboration with business partners is very of the moment. Looking at supply chain relationships, the potential gains from more integrated, open working together include improved customer service, better inventory management, more efficient use of resources and increased information sharing.

by Business Horizons 2006, 49
Last Updated: 23 Jul 2013

This study of 55 firms involved in collaborative relationships finds significantly improved information visibility, service levels and end-customer satisfaction. Companies also reported increased flexibility in doing business and reduced cycle times, and, to a lesser extent, increased business volume and inventory visibility. Firms with formalised relationships perform even better. Structuring of a collaborative relationship can eliminate ambiguity, clarify priorities and save time, it is argued.

Three areas are recommended for getting the most out of formalisation: monitoring of rules and standards; meetings and other interaction for information sharing and reassessing goals and objectives; and inventory management.

Source: Is collaboration paying off for firms?
Patricia J Daugherty, R Glenn Richey, Anthony S Roath, Soonhong Min, Haozhe Chen, Aaron D Arndt and Stefan E Genchev Business Horizons 2006, 49

Review by Steve Lodge

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