Supply Chain Discontent: Sources and Remedies
Authors : Togar M. Simatupang and Ramaswami Sridharan
Journal : Supply Chain Management: An International Journal, 2002 (under review).
A supply chain typically consists of independent firms that carry out related business processes to fulfil customers’ needs. The cooperative ability of the chain members determines their mutual success in sustaining profitability. However, supply chain discontent often occurs due to conflicting individual interests incompatible with the objective of optimising overall profitability. The behaviour of supply chain discontent leads to an increase in unnecessary costs and a decrease in revenue. This study was conducted to identify sources of supply chain discontent and to propose the framework of supply chain collaboration as a means to mitigate supply chain discontent. The framework encompasses mutual objectives, integrated policies, appropriate performance measures, decision synchronisation, information sharing, and incentive alignment. Recommendations for further research are also provided in this paper.
Keywords: supply chain collaboration, discontent, coordination, incentive, and information sharing.