Improving Supply Chain Productivity Through Horizontal Cooperation — the Case of Consumer Goods Manufacturers

Abstract

This paper turns the perspective from the popular vertical to the less discussed horizontal cooperation within supply chains. The analysis is driven by the hypothesis that horizontal cooperation in a supply chain may contain undiscovered potentials to increase productivity. This hypothesis is confirmed through theoretical and practical considerations. Horizontal cooperation is a means of logistical optimization within a joint network. The case of two manufacturers collaborating in distribution reveals savings with respect to overall distribution costs of 2,4% through process and 9,8% through structure optimization.

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