Some supply chain leaders know intuitively that better collaboration internally and externally with their partners makes sense and will create more stakeholder value, yet are not sure what to focus on. Others have to be convinced. This paper addresses the needs of both.

There is a growing body of knowledge that supports the benefits of supply chain collaboration. In their 2009 book, Poirier, Quinn, and Swink identify close collaboration with selected partners as one of the ten traits of the best supply chains [1].

A 2010 study of the impact of supply chain collaboration on collaborative advantage and firm performance by Cao and Zhang concluded that the implementation of supply chain collaboration will improve a firm’s financial performance in the long run. They identify seven interconnecting dimensions that comprise effective supply chain collaboration [2].

This paper, drawing upon a research team with over 20 academic and industry members from the semiconductor manufacturing industry, identifies 15 key processes across four dimensions. The dimensions, known by the acronym SMLR, are strategy and planning, manufacturing, logistics, and risk management. Utilizing the fuzzy analytic hierarchy process (FAHP) for analysis and focus group discussions with the research team, the authors identified one critical dimension and four key processes. The key dimension was strategy and planning. The four key processes were: “ensure collaboration with the right partners pursuing the right goal; improve production planning and scheduling to meet customer needs; develop an accurate predictive capability and appropriate inventory policy; and design product and technology life cycle.”

Supply chain leaders who want to also consider environmental and social criteria in their supply chain management systems should also see the paper by Ching and Moreira [3].