What is collaboration?
We mean working in partnership towards a shared goal usually in the medium to long term.
Businesses must be competitive, but there are always situations where co-operating with others makes more business sense. This could mean looking at ways of cutting costs, improving a product or entering a new market - or all three at once. For example, in the Case Studies section you can read about a group of food producers in Argyll who got together to break into the festival food market. It can also mean seeing a joint business advantage which requires a high level of honesty and confidence between the partners - the David Sands/Stephens Bakers case study is a good example of this type of relationship at work.
The critical element is working with other partners in the supply chain for mutual benefit. That doesn't mean that all partners necssarily share the benefits equally but it should mean that they're shared fairly. Rewards should reflect the effort that each partner has contributed.
| Businesses in collaborative supply chains tend to: |
| be consumer focused |
| respond more quickly to market changes and opportunities |
| communicate better and share information openly, leading to better business planning |
| be more efficient |
| be more likely to be competitive and more successful |
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