Supply Chain Collaboration in Textile and Apparel Industry

The impact of supply chain management is increasing day by day as business is becoming more and more competitive. As profit margin is shrinking specially in the apparel manufacturing industries, managers are looking for more and more options to explore that add to their profitability. Supply chain collaboration or SCC can be such a tool that can optimize systems and minimize costs in business operations. This article describes what SCC is all about and analyses a case study from Vietnam.

What is SCC or Supply Chain Collaboration

SCC or Supply Chain Collaboration is a supply chain strategic tool which is implemented for creating a seamless & synchronized Supply Chain, increasing responsiveness & performance and satisfying customers based on mutual goals & trusts and shared risks & rewards.

There are 3 types [3] of SCC,

The type 1: Multiple organization form partnership while coordinating activities and planning for a limited period of time.

The type 2: Multiple organizations not only coordinate together but also integrates all their activities.

The type 3: Multiple organizations integrate to a certain level. Each consider the others as extensions of their own firm.

Collaboration is the most difficult part of supply chain. Supply Chain Collaboration or SCC has the most unsatisfactory track records among all the Supply Chain strategies because only 35% collaborations were moderately successful.