Upgrading effectiveness in VEs

Abstract

Due to the rapid evolution of information technology, supply chain integration is nowadays easier than in the past. Moreover, the need for economic efficiency leads suppliers and customers to closely co-operate in pursuit of, what seems to be the holy grail of modern supply chain management, end to end optimization. The core objective of this chapter is the provision of a decision framework for enterprise formations organized as collaborative clusters, which is a sophisticated form of a virtual enterprise network. This framework, based on the ANP-BOCR model, takes into account clusters’ special characteristics the most important of which is that the supply chain entities do have a clear picture of strategies, policies, needs, strengths and weaknesses of one another. The whole approach is illustrated through a parapharmaceutical cluster case study which reveals that “common” knowledge and risks are very important in an environment where entities are sometimes partners and sometimes competitors.