The supply chain and competitive performance

Traditionally most organisations have viewed themselves as entities that exist independently from others and indeed need to compete with them in order to survive. However, such a philosophy can be self-defeating if it leads to an unwillingness to co-operate in order to compete, Behind this seemingly paradoxical concept is the 

The supply chain is the network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer. Thus, for example, a shirt manufacturer is a part of a supply chain that extends upstream through the weavers of fabrics to the manufacturers of fibres, and downstream through distributors and retailers to the final consumer. Each of these organisations in the chain are dependent upon each other by definition and yet, paradoxically, by tradition do not closely co-operate with each other. 

Clearly this trend has many implications for supply chain management, not the least being the challenge of integrating and co-ordinating the flow of materials from a multitude of suppliers, often offshore, and similarly managing the distribution of the finished product by way of multiple intermediaries. 

GANT creating value across a virtual network 

SOURCE CHRISTOPHER, M., PAYNE, A. AND BALLANTYNE, D., RELATIONSHIP MARKETING CREATING STAKEHOLDER VALUE. BUTTERWORTH HEINNEMANN, 2002 

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