Vertical and horizontal cooperation in a Supply Chain
Mass Production and Vertical Integration at Ford in the …
Supply chain integration is a continuous process that can be optimized only when OEMs, customers, and suppliers work together to improve their relationships and when all participants are aware of key activities at all levels in the chain. First-tier suppliers can play a key role in
Mass Production and Vertical Integration at Ford in the 1920s ..
Traditional unmanaged (or minimally managed) supply chains are characterized by (1) adversarial relationships between customers and suppliers, including win-lose negotiations; (2) little regard for sharing benefits and risks; (3) short-term focus, with little concern for mutual long-term success; (4) primary emphasis on cost and delivery, with little concern for added value; (5) limited communications; and (6) little interaction between the OEM and suppliers more than one or two tiers away. Integrated supply chains tend to recognize that all parties should benefit from the relationship on a sustainable, long-term basis and are characterized by partnerships with extensive and open communications. A well integrated system of independent participants can be visualized as a flock of redwing black birds flying over a marsh. Without any apparent signal, every bird in the flock climbs, dives, or turns at virtually the same instant. That is an integrated system! Supply chain members, in a similar manner, must react coherently to changes in the business environment to remain competitive.
Brazilian chicken meat production chain:a 10-year overview
A firm may specialize in one or more value chain activities and outsource the rest. The extent to which a firm performs upstream and downstream activities is described by its degree of vertical integration.