Cooperation and trust among partners within the supply chain requires investments in human and assets in developing the natural processes needed for impacting efficiently customers in the market place. In the early 80, companies act independ looking for vertical supply chain integration. But market globalization, new technologies and new inventory management techniques require sustainable relationships among suppliers and customers (Bechtel & Handfield, 2002).
Companies that want to enhance trust should evaluate the following aspects:
1. Value harmonization among supply chain participants,
2. Investments in human factor, assets and technology,
3. Developing procedures for ...view middle of the document...
To increase cooperation and trust both governments invested in human developments and asset investments for increasing living standards. With not cooperation and long relationships the Mongolian Coal developments would be impossible due to the extreme climate condition that requires high investment cost on facility sites.
• The Automotive Sector:
In the automotive sector the vertical supply chain integration concept changed quickly when automobile companies started to evaluate what to do and what to buy. Collaboration and trust behaviors converted the Japanese automotive companies in highly competitive in the global marketplace, enhancing trust between partners, participants (Chopra & Mindl, 2007). The significant changes in the automotive supply chain and logistics applying outsource activities supported the developments of inventory management concepts and data sharing,including forecasting.
• Sharing net incomes or net losses:
Because each outsource company develops their own income statement, price or cost adjustment affects the net revenue in each supply chain partner. In a collaborative supply chain, the question is how variations on production cost or sale price increase or decrease net income and affect K investments indicators considering long or short relationships. Contracts between partners define clauses...