Abstract for: Leveraging Supply Chain Relationships – A System Dynamics Perspective
Good inter-business relationships is the key to achieving supply chain objectives such as maximising customer value and reducing transaction costs, thus maximising profits. This study investigates existing theory in supply chain relationship improvement. By integrating factors that contribute to supply chain coordination using systems theory and methodology, potential long-term leverages are proposed, along with the mapping of patterns of improvement over time. Such leverages provide insight for devising supply chain relationship strategies in an efficient manner, instead of tackling improvement initiatives on a multitude of factors in isolation, as commonly featured in supply chain literature. The proposed dynamics are validated by business practitioners, whose comments and opinions are further analysed to compare and contrast with the theoretical implications. Key findings suggest that information is a top priority success factor in supply chain relationships, facilitated by appropriate implementation of information technology. However, such leverage has different impact on performance, trust, and commitment among business partners at different stages of collaboration.