A Supply Chain Paradox

Supply chain collaboration is the key to success in business. A major challenge in such collaborations is the dilemma between locally optimized quick solutions and the more systemic, long-term but ‘slow-acting’ approaches. Such dilemma in business collaborations has been contemplated in supply chain management research, illustrating their respective benefits and disadvantages. In light of the findings from literature, this study investigates the dynamics of this dilemma using an integrated perspective, utilizing both theories and case studies in supply chain relationships and collaborations. The archetypical dynamics and behavior of relationships over time are modeled, proposing an ever-evolving framework of supply chain collaborations. Along with the model, a prototype of a supply chain collaboration simulation model is also presented, as a customizable environment for policy testing and demonstration of different supply chain collaboration approaches. This model may also be used for training purposes as Microworlds.