Study On Metal Industry Supply Chain Strategic Cooperation Relationship

Globalization of economy has greatly changed the competition environment. Traditional competition relationship between enterprises is being challenged by complicated and specific market requirement, which require enterprises in supply chain build up cooperation relationship to enhance coordination management in supply chain and foster integrated competitive strength of the supply chain. In recent years, Chinese metal industry grows rapidly. However, its further growth has been limited by some bottleneck problem, such as raw material supply, power, transportation etc. As an advance management ideology, supply chain strategic cooperation will be significant especially for Chinese metal producers.In this paper, prior research results were summarized firstly, based on which transaction cost economy, strategic management and value chain theory were applied to explain how the strategic cooperation in supply chain could reduce transaction cost, negatives impact of market uncertainty on enterprises in supply chain, and consequently enhance competitiveness of enterprise in supply chain. Then put the logic in metal industry, we get the conclusion that through building up strategic cooperation in metal supply chain, competitiveness of enterprise in metal supply chain could be improved significantly. Finally, point out several major existing problems in current metal supply chain cooperation and improvement idea.