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