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Role of Trust and Collaboration

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I'm interested in opinions on an article I read. Read the attached article entitled "The role of trust and collaboration in the internet-enabled supply chain" by Dr. Martin Grossman, an Associate Professor at Bridgewater State College .

Specifically:

1. How and why is the role of trust still very important in the Internet-enabled supply chains?

2. Why does the author think that "Collaborative Planning, Forecasting and Replenishment (CPFR)" helps create such trust?

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1. How and why is the role of trust still very important in the Internet-enabled supply chains?

Supply chain management refers to the activities that are involved in planning, organizing, and coordinating the supply chain with the goal of minimizing uncertainty and risk which can result to better inventory levels, processes and services.
The rise of the Internet has triggered the reinvention of the supply chains in most industries. This is a revolution that has extended beyond the efficiencies that automation and communication has given so that more chances that create value is derived from synchronized supply chains that can be used to reach out to bigger markets and make the processes more efficient and more effective to suit the individual customers' needs with products that adapt to the competitive needs. The Internet has greatly affected the way supply chains are presently managed, planned and controlled. Since the supply chain has become one of those taking advantage of the information age, it is very important that it must be supported by tight coordination between the business partners and those included in the chain. This means that all the transactions, information and even the decisions of synchronized supply chains will be going through the Internet or the Worldwide Web. This radical change is caused by the customers' ever increasing demands. They are always on the lookout for the most innovative and personalized products and its associated service and delivery. Because of this, the supply chain activities that are done by all partners concerned must be strictly synchronized with demands of the market which is not only to communicate but also to manage the complexity and the immediacy of synchronization.

The Internet-enabled supply chain has been typified by more inter-organizational systems (IOS) which means that the Internet-enabled supply chain has been run by information technology systems that are widely used between the organizations. Although there are advantages with the use of inter-organizational systems, a certain level of trust is important to make these systems work effectively. Inter-organizational systems have various classifications but regardless of how ...

Solution Summary

The solution discusses the role of trust and collaboration in the Internet-enabled supply chain. References are included.

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