The framework presented in this paper mainly described about the formation of collaboration between manufacturers and 1st tier suppliers in Thailand Automotive Industry. Collaboration is the major component of SCM. Therefore, applying collaboration to an organization may increase the competitive advantages for the whole supply chain process. This work concludes based on the past journal reviewed and case study in practice. This paper is a kind of guideline to the manufacturers who wonder about how to begin the collaboration among their partners. In summary, initially, we have to clearly understand what collaboration is. Then, we need to consider about factors that influence the formation of collaboration. After that, we have to decide which collaborative mechanism will be involved in collaboration among partners. After the collaboration is formed, lastly, we have to identify the success of collaborative efforts. But this cannot be assured unless the performance is properly monitored and measured. Hence, the level of collaboration of an organization must be arisen. This paper also provides a case study of automotive industry in Thailand which is Toyota Motor Thailand. In this case, we studied about the factors influencing the collaboration formation, the factors for choosing suppliers, and the benefits gained from applying collaboration in practice of Toyota Company.
For further work, this study can contribute into different industries in order to determine the level of collaborating in various ways for an effective in measuring the success of collaboration. In addition, the factors influence the formation of collaboration and the benefits gained from collaborating may not be the same for all types of industry, but they are closely related.