Supply chain collaboration index: an instrument to measure the depth of collaboration

Abstract

Purpose – The purpose of this paper is to develop and measure supply chain collaboration index and to arrange collaborative activities in terms of its importance. Design/methodology/approach – This study uses data from industries in India to compute the collaboration index. Weight for each activity of collaboration was calculated by analytic hierarchy process (AHP) and this weight was used to compute the index combined with the formula proposed by Fornell et al. Findings – Supply chain collaboration index is computed as 40.44 on a scale of 1-100. The study also arranges collaborative activities in decreasing order of importance. Practical implications – By using model of this study, a firm can benchmark its collaborative practice. They can also identify extent of practice of internal and external focus areas. Further, firms can identify which activities should require more attention and improvement. Originality/value – The study proposed a supply chain collaboration index model and calculated the index using the proposed model and data collected from India. The study used model as proposed by Fornell et al. to compute collaboration index combined with the weight computed by employing AHP.