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Horizontal Collaboration - Sharing Supply Chain Assets with Your Competitors

With ever-changing business challenges such as transportation costs, volatile demand and an evolving customer base, supply management organizations are exploring new and unique ways to use collaboration in their supply chains. One such effort is turning traditional vertical collaboration strategies on their side and may change the way organizations view their supply chain - and their competitors.

Referred to as horizontal collaboration, this approach is characterized by manufacturers sharing supply chain assets for mutual benefits. It is collaboration across rather than along the supply chain. Often, horizontal collaboration is between companies in the same industry that, while not competing directly, market and sell to similar customers and consumers. A high-profile example of horizontal collaboration involves the Hershey Co. and the Ferrero Group in North America. Late last year, the two companies announced plans to collaborate on warehousing, transportation and distribution, furthering proof that this supply management practice is gaining in popularity.

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Keywords: Business Strategy Alignment, Global Supply Chain Management; Collaboration & Integration, Supplier Relationship Management, Sourcing & Procurement Solutions, Technology; Food and Beverage, Hershey Co., Ferrero Group

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