Supply Chain Collaboration Between Suppliers And Retailers

With global market more competitive, product life is shorter and customer demand is higher to let supply chain management be more concerned by enterprise accordingly. Advanced supply chain management request crossenterprise collaboration, which enable efficient consumer response and cost management enhancement. Supply chain collaboration will be future development and revolution direction.Currently the relationship between Retailers and Suppliers in FMCG industry facing big changes, especially in supply chain functions, more and more Retailers and Suppliers aware both have to collaborate and take competitive supply chain model to ensure higher operation efficiency and providing best service to the consumers, instead of deciding market demand by Retailer one side as previous. Supply chain collaboration is oriented by consumer demand and it’s the starting point of whole chain, best collaboration could benefit both and avoiding excessive or lack production.Combining supply chain management theory and real market practice, taking NCE China supply chain as example, studied supply chain collaboration projects which currently implementation between Nestle and retailers, for example, Route to Market, Forecast Collaboration, Palletized shipment, Vendor Management Inventory, etc. Per such analysis and discussion, demonstrates the achievements and as well as the problems should be fix in the whole chain. base on that, also propose solutions as both sides should establish a fundamental capability in planning, building long-term relationship to solve the problem together, emphasizing mutual trust and cooperation, to achieve higher efficiency supply chain operations for both Retailers and Suppliers.