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Problem

Explain why cooperation among supply chain participants determines whether the supply chain is effective.

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Step 1/3

Primary objective of Supply chain management is coordination and collaboration of activities performed between the business partners in order to increase efficiency and effectiveness of the processes.

The increased efficiency results in various benefits for the businesses. Some of the benefits include cost reduction, waste management and increased revenue. A business participant includes suppliers, intermediaries, third party providers and customers.

Step 2/3

Cooperation among supply chain management determines whether the supply chain management is effective or not in following ways:

• The degree of effectiveness and efficiency of a supply chain can only be achieved in case a company has cordial and good relation with the suppliers as suppliers are mainly responsible for increasing efficiency.

• Information is required to be communicated from the manufacturer to the suppliers. Coordination between the various parties involved in the supply chain management allows the parties to communicate seamlessly with other parties.

• The various activities that are required to be conducted on continuous basis or improving the efficiency and effectiveness of various processes could only be achieved through coordination between the parties.

Step 3/3

Thus, these are a few ways which shows the importance of coordination between the manufacturer and the supplier in order to make the supply chain management more effective.