Supplier and buyer collaboration in virtual corporation structures

Marketing

Many companies now use suppliers to produce raw materials or parts instead of producing these components themselves. In the extreme, companies such as Dell Computer own no production facilities and have suppliers make everything to order.(This type of company has been nicknamed a "virtual corporation.") Do you think buyers and suppliers are likely to be more cooperative or more adversarial in this type of corporate structure?

The development and sustaining of any virtual corporation needs to be completely built on the foundation of being as responsive to the demands of customer first. As both suppliers (sellers) and buyers (manufacturers) both benefit from increased order accuracy and velocity, the levels of collaboration being accomplished between these two groups is at their highest levels ever. There are many factors that are contributing to this high level of collaboration between suppliers and buyers, yet foremost among them is the critical need for supply chains to be as demand-driven and as a result, as agile as possible. The critical need for supply chain visibility is what makes this collaboration also critical. From the most simplistic products to the most complex that often have services sold as part of the total solution delivered to customers, the ability to commit and deliver on a specific date for delivery all hinges on collaboration between suppliers and buyers. This is just one instance of the critical need for this link between supplier and buyer, yet there are many, many more that are specific production, product customization, pricing, services, and support.