Strategies of supply communities

Abstract

Only one customer really counts: the end customer. The final purchaser decides whether each supply chain member adds value, and is thus willing to pay for the added benefit, or whether by‐passing a particular link in the supply chain makes economic sense. It is in this context that profit, based on value‐adding behaviors, provides the primary incentive and reward for supply chain members to organize. This article suggests that successful supply chains are those that are evolving into supply communities. This article presents a framework for more thoroughly understanding the motivation that members of the supply chain have for developing consistent business strategies, thereby enabling the supply community to compete effectively.

Citation

Katz, J.P., Pagell, M.D. and Bloodgood, J.M. (2003), "Strategies of supply communities", Supply Chain Management, Vol. 8 No. 4, pp. 291-302. https://doi.org/10.1108/13598540310490053