Co-operation and conflict
• Normally, a supply chain consists of distinct organisations, each working for their own
benefit.
• So why should they co-operate?
• Why should one company work to benefit another?
• The first problem with external integration is overcoming the traditional view of organisations as adversaries.
• When an organisation pays money to its suppliers, people assume that one can only
benefit at the expense of the other.
• Each is concerned only with their own objectives and will – when convenient to themselves –
change specifications and conditions at short notice.