Collaborative supply chain practices: Taiwanese companies in China

Abstract

The aim of this research is to investigate collaborative supply chain practices between Taiwanese and Chinese companies. To that end, we seek to address four main objectives: 1) to investigate and provide evidence of collaboration in supply chain management; 2) to evaluate supplier development within supply chain collaboration; 3) to investigate the internal processes of supply chain collaboration; and 4) to examine the outcomes of supply chain collaboration.

To explore collaboration in supply chain management, we conduct an extensive review of the state of the art in collaborative supply chain, and we base our investigations and discussions on three real-life companies that practice collaborative supply chain methods in the target countries. Each study contains detailed information on each company, including the company’s background, history, culture, marketing strategy and their collaborative practices. We employ pattern-matching structures to analyse current collaborative practices, which allows us to determine the similarities and differences between theoretical collaboration and collaborative supply chain in practice.

We have analysed both the literature and collaborative methodologies used by the companies in each case study, and we have identified a number of key findings that address each of the four research objectives. On one hand there is evidence to support the use of collaboration in supply chain management between Taiwanese and Chinese companies. However, to increase collaboration, we propose agreements between the countries and identification of key suppliers. On the other hand, dominant and powerful partners may prevent good collaboration within the supply chains. Therefore, in order to create an open minded and collaborative culture, we propose greater trust between Taiwanese buyers and Chinese and Taiwanese suppliers. The value in collaborative supply chain can then be realised, which has a positive impact on the business in terms of increasing competitive advantage and customer satisfaction. In addition, such collaborative practices provide the motivation for collaborative supply chain management between Taiwanese buyers and Chinese and Taiwanese suppliers.