Evaluation of Supply Chain Collaboration: An AHP Based Approach

Supply chain collaboration (SCC) is the driving force to establish a collaborative relationship based on truly shared goal. The need of SC collaboration is to improve sales and/or profits of organization, to take market share away from competitors, to reduce organization‟s SC costs, to eliminate or reduce investments in physical assets, to transfer costs and risks to other parties in SC, to create a more flexible and responsive supply chain. The objective of this research is to evaluate SC collaboration using Analytical hierarchy process (AHP) by understanding the enablers for effective SC collaboration in the manufacturing organizations. To build awareness of the critical SCCEs and present an approach to make SC collaboration effective by understanding the dynamics between various SC Collaboration Enablers (SCCEs). The findings of the present research work reveal that three enablers of supply chain collaboration were statistically significant to organization performance. The empirical results demonstrate that top management support, common objectives and goals, communication SC strategic planning, Advance technology, Training Advancement and organization compatibility for SC collaboration are the seven main influential factors on the success of SC collaboration project. This study used subjective judgment and any biasing by the person who is judging the SCCEs might influence the final result. Here, 20SCCEs have been used to identify and rank the major SCCEs in relation to the success of SC Collaboration in the organization. The results offer insights to supply chain collaboration practitioners and policy makers for computing importance weights of SCCEs, which helps to identify and rank the important SCCEs for their needs and to reveal the direct and indirect effects of each SCCE for achieving the effective SC Collaboration in the organization by using AHP approach.