Top because the firms are separate from each other’s.

Top management commitment:

The support from top management is
necessary for coordination of different department within an organization for
training of employees, development of suppliers ( Genesan and Saumen 2005)
commitment from top management is key for responsive supply chain. Strategies
for material, technology, time, money, and power also imposed by top level
authority (Shin et al 2000). Top level management commitment also gives
facilities of software applications, intranet and internet and other support
systems (Stanley et al,2009). They also play a vital role in supply chain
strategy formulation, because effective strategies make supply chain
successful.

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Mutual understanding:

The trust between firms takes a key
part in strategy formulation. It is a thing by which the cost of SC can be
reduced. Actually it is mutual confidence that describes that no party exploit
the believes of other party. Trust present when one supply chain factor as
confidence on other SC factor (Enderson & Narus 1990). For better flow of
information trust is major factor. There will conflict of interest when
individuals prefer their risk and rewards instead of risk and reward of supply
chain. Trust and supply chain member’s commitment is very vital for increasing
the performance of supply chain in the countries that are developing (bianchi
and saleh, 2010).

Flow of information:

To decrease the cost is the control
purpose of supply chain inventory MGT. collaboration in inventory system can be
difficult because the firms are separate from each other’s. Sharing information
is important for making supply chain responsive (Stanley et al 2009), because
inventory management is main area of focus in supply chain. Finding
coordination in inventory management is very difficult because all companies
are competing against each other or they are independent. These companies do
not share their personal and secret data and other third party have to find
their inventory policies. For a responsive supply chain point of sales data
should be available.

Relationship
and decision making:

Increasing the satisfaction,
decreasing conflicts and maximizing relational behaviour are three outputs of
long term coordination. The result of better decision making are that demand
can be better forecasted, development of trust among supply chain members and
informational flow (Mehrjerdi, 2009)

 

 

 

Supply chain
responsiveness:

Supply
chain responsiveness means how rapidly an organization treats with customer
inputs. Agile and quick supply chain is
important. (Li et al 2008). If the goal and vision of supply chain members are
different then the profit of supply chain cannot be achieved (Arshinder et al,
2007). Agility in the supply chain is important factor. Agility means
quickness, in which time you fulfill the order. Conflicts increase individual
profits instead of profit of whole supply chain. There are three basic outcomes
of long-term orientation one is relational behaviour maximization second is
minimization in conflicts and third is full satisfaction. When there is supply
chain responsiveness in supply chain then delivery will be on time, cost will
be reduce and forecasting of data will be accurate (Mehrjerdi, 2009).