Proceedings of The 8th International Conference on New Ideas in Management, Economics and Accounting
Elimination of supply chain coordination’s obstructive factors with the help of contracts
The biggest problem of supply chain coordination is to define the exact factors, which influence negatively the cooperation. Because the rest of the coordination problems can be traced back to basic cooperation gaps. No willingness to share information, no willingness to cooperate, different goals are defined by each partner, and there are many mismatches in the ordered quantities, which could be derived from for example the different production cycles, replenishment times, or delivery times. These problems more or less – it depends on the different specifications and strength of them – influences the coordination of supply chain members. To handle this problem, the literature recommends the use of various supply chain contracts. Frequent types of contracts are presented by the paper and with the help of some good practices, the specifications of contracts’ application are also known. The goal of the paper is to present a decision-support model. This model focuses on the elimination of the determined obstructive factors of coordination with the use of different contracts.
Keywords: Coordination Mechanisms, Decision-Support Model, Supply Chain Contracts, Supply Chain Coordination, Supply Chain Management.