Supply chain collaboration under uncertainty

In fluctuating economic conditions such as global recession, supply chains operate under changing conditions of uncertainty. The impact of this uncertainty and associated risk might be mitigated by collaboration. This paper proposes a model of supply chain collaboration based on information exchange and decision coordination at both the strategic and tactical levels. However, a collaborative supply chain can be exposed to associated risks such as the failure of individual actors. Governance regimes can facilitate collaboration at the strategic and tactical level and mitigate valid apprehensions about collaboration that the actors may have. Governance can be considered as a critical factor in achieving collaboration. The paper argues for explicit rules to regulate information exchange and decision coordination at the strategic and tactical level. An illustrative case study of an automotive supplier from the electronics industry is used to explain the model