TABLE OF CONTENTS Collaborative Processes use Internet connectivity and standards to enable real-time communication and planning functionality across multiple enterprises to synchronize information and product flow, in order to optimize resource allocation and minimize costs. It may help to reduce inventory across enterprises, maximize network capacity utilization, improve service levels, shorten planning cycles, pull rather than push products, identify critical supply issues, and introduce sophistication and clarity into the process. Collaboration with upstream and downstream partners can take many forms, including mass customization to joint product development, shared forecasts, and co-location or other managed inventory practices, yet it requires that the internal processes are in place (see figure below).
As can be seen, this changes the nature of the relationship and hence the transaction between trading partners. Instead of buyer/seller relationships we have a range of relationships. Collaborative Planning may take place either via B2B or B2M2B collaborative scenarios.
Companies may view collaboration as a means to synchronize supply chain operations, particularly with regard to strategic, tactical, and operational planning activities. Collaboration may involve optimizing and integrating various planning processes in the supply network, like: Sales & Ops-, Demand-, Capacity- Supply-, Production-, Product Lifecycle-, Category-, Transport-, and Merchandise Planning. Many companies are currently experimenting with systems technology to speed up operational and financial transactions with trading partners by using EDI and more recently, e-Markets. This coincides with the increasing automation of internal processes, which is necessary to conduct B2B commerce. Furthermore, many internal production...
