Supply chain coordination operational performance

Issues about coordination of business activities have been studied extensively in recent years. In a typical distribution channel, coordination can be characterized as Vertical or Horizontal. Vertical coordination focuses on the issues of why and how the different channel members (for example, supplier and retailer) should consolidate their operations to achieve better system performance. It is also known as Supply Chain Coordination. For a thorough review of vertical channel coordination, please refer to Cachon [27] and several chapters in Tayur et al. [147]. 

The many activities to be conducted on the performance Y, such as order logging, order clarification, design, work preparation, allocation, selection of suppliers, procurement, incoming merchandise, quality assurance, preparation of all production documents and inventory, planning and readiness of capacity, production, storage, assembly, start-up operation, acceptance, shipping, transport to the customer, and in the case of single item producers, also the set up, start-up operation and acceptance on site are to be understood as the performance processes to be accelerated, i.e. the intra-corporate supply chain. Each of these activities are to be implemented and coordinated so as to ensure that a maximum overall company result is achieved. 

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