The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:

The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:
A . transportation of goods to the next link in the chain.
B . flow of product information up to the next level of the chain.
C . flow of demand information and cash up the chain.
D . flow of supply into an organization.

View Answer

Answer: C

Explanation:

Collaborative supply chain management focuses on the integration and coordination of the supply chain entities to enhance overall performance. Unlike a transactional approach, which primarily emphasizes the exchange of goods or services, a collaborative approach emphasizes the flow of demand information and cash up the chain. This means that information about customer demand and financial transactions move upstream, enabling all parties in the supply chain to better plan and execute their operations in alignment with actual market demand, leading to improved efficiency and responsiveness.

Reference: Lambert,

D. M. (2008). Supply Chain Management: Processes, Partnerships, Performance. Supply Chain Management Institute.

Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith,

C. D., & Zacharia, Z.

G. (2001).

Defining supply chain management. Journal of Business logistics, 22(2), 1-25.