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?
Co-operation and conflict (cont.)
• 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.