Supply chain collaboration: impact of success in long-term partnerships

Abstract

The effects of collaborative planning, forecasting and replenishment in the performance of supply chains have been discussed in the literature. In this research paper, we posit that these effects along with other collaborative factors influence the success of collaboration in supply chains. The objective of this paper is to uncover the impact of collaborative planning, collaborative decision making of supply chain partners and collaborative execution of all supply chain processes in the success of collaboration. We used empirical analysis to validate our research paradigm. Data were obtained through a questionnaire survey of customers of a Textile company. We used confirmatory factor analysis and structural equation modelling (using AMOS). The results of the analysis confirm that the factors of collaboration impact the success of supply chains that will lead to future collaborations. Collaborative execution of supply chain plans will also have an impact on future collaborations. Companies that are interested in supply chain collaborations can consider engaging in long-term collaboration depending on the success of current collaborations. This will help SC partners to make investment decisions particular to collaboration.