Growth of Supply Chain Collaboration

The supply chain collaborative network provides great potential for benefits to partners and as their participation grows the benefits will also grow. The importance of the collaborative network has been growing, as well, as a framework to support the disruptive transformation currently at work in the supply chain and in fact, I really do not see another option that provides the foundation and the flexibility to support the change driven in the supply chain by demands of consumers’ embrace of technology. I am viewing this as a dramatic change in the culture of the market where there has historically been a focus on develop, license or acquire companies with capabilities the market is moving into a much more nimble environment driven by an increasing velocity of discontinuous change based on technology combinations and demands of the marketplace. In this market the collaborative network capabilities take on a new, much higher, level of importance because there is just no time for development or acquisition.





Amazon probably provides the best example of creativity in utilizing the power of the collaborative network. Amazon has shown their creativity in extending their product offerings through partnerships with small and specialty manufacturers and even private citizens to provide a powerful shopping and sales outlet and they are showing again their commitment to collaboration by partnering with small carriers and even private citizens in the delivery of products to the end consumers. I see that Amazon has been building infrastructure to support an extended collaborative network for years and they are now expanding their collaboration to take advantage of this foundation and help them to change the market again.





This puts others in the retail market at a distinct disadvantage, again, and this extends out through the entire extended supply chain, including all partners, as well. In this arena Amazon is the 800 pound gorilla driving the change and they are now in an advantageous position because of all of the preparation in foundational activities and their drive the create the future. I think this may be the key differentiating factor for Amazon, in this market Amazon seems to have the vision and are driving to create the future. This means that they are able to define the future as it fits into their foundational framework and it puts an even greater significance on the collaborative network and partnerships that others must follow to keep up.





I see collaboration as the next transformation mechanism and market disruptor and Amazon has shown from the beginning their commitment to collaboration to grow their offerings and market share. We are now seeing the results of this collaborative culture through their acquisition and growth over the last few years. They are continuously focused on leveraging all aspects of their offerings, technology and shopping outlets to produce a cohesive image and flow across their offerings. This collaborative culture will provide the ability to quickly sense and respond to the time of disruptive change that we are entering and there will be a great deal of fall out during this time.