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Abstract
To achieve a successful supply chain, it is crucial that all supply chain members collaborate. However, this may be a difficult task to achieve because supply chain collaboration assumes that links are willing to cooperate and that there are no inherent conflicts happening within the supply chain network. In practice, organizations may not want to cooperate. Therefore, this paper identifies and addresses a number of dilemmas that arise when supply chain members involve in collaboration. These include forecasting, pricing, delivery, risk, and sharing of information. In addition, this paper shows how evaporating clouds is used to expose the inherent dilemma of supply chain collaboration. Further, this paper attempts to apply the TOC approach to overcome this core conflict. Specifically, it shows how evaporating clouds can be used as a tool to convince immediate supply chain members that the solution to the supply chain collaboration core conflict arrives in the form of TDD/IDD measures. These collaborative performance metrics, when implemented effectively, help in identifying the constraint(s) and thereby, encourage TOC-based continuous improvement efforts to generate value by increasing revenues and reducing overall costs simultaneously across an SC network.
Keywords:
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