Supply chain collaboration: reducing risk and building resilience

A practical guide to align partners and drive measurable results

C-level leaders are under pressure to deliver more resilience, lower costs, and faster response times. Disconnected systems, scattered data, and competing priorities make this difficult, leaving many organizations exposed when disruptions occur.

This guide explains how to build a connected supply chain, work effectively with partners, and create a plan that is practical, scalable, and secure. You will learn what supply chain collaboration is, how it fits with your current processes and systems, and how to start small to build momentum for long-term success.

Key takeaways

• Supply chain collaboration turns cost centers into profit drivers, improving EBITDA by reducing supply-chain costs by 10 to 20 percent
• Success depends on connecting systems, aligning incentives, and building trust with partners through clear data sharing and governance rules
• Start with a 90-day pilot that targets high-impact areas to show results quickly
• Use a platform that integrates easily with existing systems and supports smarter, faster decisions
• Shift from focusing only on cost cutting to building partnerships that create value and resilience

Why collaboration matters

Supply chains are more complex than ever. Global networks face constant disruptions from natural disasters, market volatility, and other external shocks. A survey shows that 94 percent of companies have experienced revenue losses from these disruptions.

This environment has moved supply chain performance from a back-office function to a top priority. Lean, efficiency-only models are no longer enough. Today, companies need supply chains that balance resilience, agility, and cost efficiency.

This guide gives leaders a practical approach to building stronger supply chain collaboration, showing what it is, why it matters, and how to get started.

What supply chain collaboration means

Defining collaboration

Supply chain collaboration is when two or more organizations in a supply network work together to reach shared goals and create value for everyone involved. This happens by sharing critical data, resources, risks, and rewards.

What to tell your board: Supply chain collaboration transforms cost centers into profit drivers. Instead of reporting reactive firefighting costs, you'll present proactive partnership ROI that directly impacts EBITDA.

The shift is from treating suppliers as vendors to building connected, strategic relationships. Instead of a straight line from supplier to customer, think of it as a network where information flows quickly in all directions. This network view helps you spot risks faster and reduces blind spots, especially with second- and third-tier suppliers who can shut down production.

Why collaboration connects strategy and execution

Collaboration is what turns high-level business plans into action. For example:

• Companies cannot achieve carbon-reduction goals without involving suppliers to measure and manage emissions
• Manufacturers cannot adjust quickly to demand changes unless their partners share timely, accurate data

Customer expectations are also higher than ever. During the pandemic, 39 percent of US consumers switched brands when products were unavailable. Companies with collaborative supply chains that share data and respond together are better positioned to prevent those problems.

The business case for collaboration

Any large investment needs a clear business case showing expected returns and benefits. Collaboration delivers measurable improvements in cost, service, and risk management.

Benefits you can measure and report to board

• Increased margins: Collaboration can boost profitability by 2 to 4 percentage points
• Lower costs: Companies often see supply chain cost reductions of 10 to 20 percent
• Better service: Service levels typically improve by 5 to 15 percent

Case studies back this up. For example, one distributor achieved a 307 percent return on investment with a 14-month payback by using a collaborative platform that improved planning and reduced excess inventory.

Risk reduction and resilience

Collaboration also lowers risk. On average, a company experiences a major supply chain disruption every 3.7 years. Over a decade, these disruptions can add up to the loss of about 30 percent of one year’s profit.

The biggest problem is lack of visibility. Only 6 percent of companies report full end-to-end visibility, and just 2 percent have insight into their tier-three suppliers and beyond. Collaboration closes this gap by creating transparency across the network.

Barriers to effective collaboration

Many companies face three main challenges when trying to improve collaboration in their supply chains.

1. Technology silos

Most companies use a mix of legacy systems. A legacy system is an older software or platform that is still in use but may not connect well with modern tools. Common examples include:

• ERP, or enterprise resource planning, which is software that manages core business processes like finance, procurement, and inventory.
• WMS, or warehouse management systems, which track and manage the storage and movement of goods in warehouses.

• TMS, or transportation management systems, which plan and monitor the movement of goods from one point to another.

While modern systems are increasingly integrated, many companies still rely on legacy platforms that don't communicate effectively with each other. One system may track incoming raw materials, another monitors inventory, and a third handles shipping, but none of them communicate. This creates blind spots and delays in decision-making. A manufacturer might overorder materials or miss shipment deadlines because there is no single, accurate view of the data.

2. Operating model gaps

An operating model is the way a company organizes its processes, people, and technology to deliver products and services. Many companies lack consistent processes or standards across their supply chain. Without shared rules or governance, meaning clear ownership of decisions and data, collaboration becomes slow and inconsistent.

For example, a consumer goods company might use different formats for product data in each region. When they try to combine information to get a complete performance view, they find mismatched numbers and incomplete reports. This slows down their ability to act quickly and respond to problems.

3. Lack of trust

Trust is essential for sharing accurate, timely data. Many companies hesitate to share sensitive information with partners, such as demand forecasts, pricing details, or production schedules. This reluctance often leads to inefficiencies.

A common example is building just-in-case inventory, which means keeping extra stock on hand to prepare for disruptions. While this safety stock can prevent shortages, it also ties up cash and increases storage costs.

Overcoming these barriers is the first step in building a connected, collaborative supply chain.

How to build a strong foundation

Once the barriers to collaboration are understood, the next step is building a strong base for long-term success. This means creating the right structure, aligning internal teams, and choosing the best partners to work with. Take these steps to start on the right path:

• Choose the right partners. Start with organizations that are open to sharing data and have the systems to support collaboration. It is easier to build momentum when your partners are already using modern tools and processes. Over time, you can bring more complex or less mature partners into the process.
• Align internal teams first. Make sure that everyone in your company understands why collaboration matters and what benefits they should expect. When internal teams are aligned, communication with external partners is smoother, and projects face fewer delays.
• Build fair, balanced agreements. A partnership only works when all sides see value. Create agreements that clearly define responsibilities, expectations, and data-sharing rules. Fair arrangements build trust and reduce the risk of misunderstandings or conflicts as the project grows.
• Define shared success metrics. Before starting, agree on clear, measurable goals that both your company and your partners can track. Examples might include reducing lead times by a set percentage, improving inventory accuracy, or cutting waste in production.
• Treat collaboration as an ongoing process. Building trust and alignment does not happen overnight. Successful companies make collaboration part of their everyday operations, not a one-time project. Regular reviews and updates help refine processes and strengthen relationships as conditions change.

A solid foundation sets the stage for every step that follows, from pilot projects to large-scale rollouts.

Building trust and securing data

Trust comes from transparency and well-defined rules. Assign someone to oversee collaboration, manage the platform, and ensure that partners follow the agreed framework.

Security should be a priority. Use role-based access, strong authentication, and encryption. For sensitive data, consider using neutral third parties or secure technologies to add confidence and protect the flow of information. 

How to improve collaboration across your supply network in the next 90 days

The best way to start improving collaboration is with a practical pilot program. A pilot is a controlled, small-scale project that lets you test your ideas, reduce risk, and show measurable results quickly. When well-designed, a pilot builds confidence inside the company and makes it easier to secure leadership support for larger rollouts.

Start with a high-impact pilot and the right partners

Choose an area of your supply chain that is important and likely to show results fast. A pilot should be small enough to manage but meaningful enough to prove its value. Success comes from following a structured plan:

1. Define a clear, measurable objective
   Set one specific goal for the pilot. For example: "Reduce lead time for component X by 15 percent in 90 days." This gives the team a target to track and makes it easier to evaluate results.
2. Engage key stakeholders
   Bring in the people who will actually use the system, from both your company and your partner’s organization. Early involvement helps spot potential problems, builds trust, and increases adoption once the pilot is live.
3. Address data quality
   Dedicate time and resources to cleaning and standardizing the data you will use in the pilot. Poor data leads to unreliable results, which can undermine confidence in the project.
4. Develop a change management plan
   Change management means preparing people for new ways of working. Provide clear communication, practical training, and easy-to-access support materials. This reduces resistance and helps the pilot run smoothly.
5. Form a dedicated project team
   Build a cross-functional team with members from different departments who have the authority to make decisions. A focused team keeps the pilot on track and resolves issues quickly.

Create shared KPIs, rhythm, and issue reporting

A successful pilot needs a clear way of managing progress and communication. Start by creating shared KPIs that reflect the goals of both your company and your partner. Support this with a regular schedule, such as weekly progress check-ins and a bi-weekly steering committee meeting with senior sponsors. Establish a simple, clear process for reporting and solving problems so small issues do not turn into bigger roadblocks.

Translate the 7 Cs into actions

Use the 7 Cs framework to guide your pilot. In the first 90 days, focus on mastering three of the core Cs: coordination, consolidation, and collaboration.

• Coordinate: Use a shared digital platform to connect your partner’s production schedule with your demand forecasts. This improves planning and reduces surprises.
• Collaborate: Set up a joint problem-solving team to quickly handle exceptions using the shared platform. This keeps the pilot moving and builds trust.
• Consolidate: Test ways to combine shipments from the pilot partner with another supplier to reduce costs and increase efficiency.

Secure early wins to build momentum

The main goal of the pilot is to produce quick, measurable results that you can share internally. Track performance against your agreed KPIs and communicate the outcomes clearly to leadership. These early wins show that collaboration is worth the investment, turning the project from an idea into a proven, low-risk strategy.

By the end of the 90 days, you will have tested your approach, gathered useful data, and built the confidence needed to expand collaboration across the rest of your supply network.

Scaling collaboration

A pilot project shows what is possible. Scaling that success requires a plan and the right technology to connect processes, systems, and partners across your network. A fully connected supply chain improves visibility, speeds up decision-making, and creates a foundation for continuous improvement.

Integration patterns that simplify decisions

Scaling works best with a platform-based approach. Instead of building many fragile, one-to-one system connections, use a single platform that acts as a hub for collaboration.

The sedApta smart collaboration platform exemplifies this approach, integrating seamlessly with enterprise resource planning (ERP) systems that manage core business operations like finance, procurement, and inventory. This integration creates a single, accurate source of information and eliminates the need to replace existing systems, saving time and reducing risk.

What to look for in a platform

• When selecting a supplier collaboration platform, sedApta's smart supplier collaboration delivers the key features you need: A multi-enterprise network that connects all partners in a shared environment
• Real-time visibility across the entire supply chain, giving you a clear view of production, shipments, and deliveries
• Built-in analytics to provide insights and recommendations for faster, better decisions
• Pre-configured workflows for common processes like production planning and shipment tracking
• Strong security and governance, including role-based access and encryption to protect sensitive data

Examples of collaboration in action

Studying supply chain collaboration examples can provide a powerful blueprint:

• Acqua Sant’Anna (Achieving Agility): with sedApta, Sant’Anna streamlined production and demand management, gaining the agility to quickly adapt to seasonal variations and consumption peaks. This enabled the company to optimize production capacity while maintaining high service levels
  
  
• Davines (Building Resilience):the cosmetics group Davines adopted sedApta solutions to digitalize its planning processes. With enhanced end-to-end supply chain visibility, the company strengthened its operational resilience, reducing risks from sudden demand fluctuations and ensuring production continuity.

Trends to watch in supply chain collaboration

Two major supplier chain collaboration trends are transforming partnerships today: better use of data and automation, and stronger, more strategic partnerships with suppliers.

Using data and automation more effectively

AI in supply chain collaboration is transforming how companies work with partners and suppliers. Seventy-four percent of professionals see artificial intelligence and advanced analytics as key drivers of change howeveronly 23 percent have a clear strategy for using them. These tools help predict demand, automate repetitive processes, and manage risks more proactively.

Building stronger partnerships

Supplier relationships are moving away from short-term, cost-only deals toward longer-term partnerships that deliver shared value. This shift includes:

• Moving from pure cost reduction to shared value creation
• Becoming a customer of choice so that critical suppliers prioritize your business
• Making visibility and joint emergency planning a core part of your operations
• Treating sustainability and other environmental, social, and governance (ESG) goals as shared responsibilities

Conclusion

Supply chain collaboration directly impacts the metrics boards track: EBITDA margins, cash-to-cash cycles, customer satisfaction, and enterprise risk. A focused 90-day pilot with shared KPIs provides board-reportable ROI within one quarter, de-risking broader investment.

The shift from reactive crisis management to proactive collaboration isn't just an operational improvement - it's a strategic advantage that protects revenue during disruptions while competitors scramble to respond.