What is Supply Chain Coordination

A supply chain consists of a network of key business processes and facilities, involving end users and suppliers that provide products, services and information. In this chain management, improving the efficiency of the overall chain is an important factor; and it needs at least four important strategic issues to be considered: supply chain network design, capacity planning, risk assessment and management, and performances monitoring and measurement. Moreover, the details break down of these issues need to consider in the level of individual business processes and sub-processes; and the combined performance of this chain. The coordination these huge business processes and their performances are of immense importance.

Supply chain coordination aims at improving supply chain performance by aligning the plans and the objectives of individual enterprises. It usually focuses on inventory management and ordering decisions in distributed inter-company settings.

A contract is said to coordinate the supply chain if no firm has a profitable unilateral deviation from the set of supply chain optimal actions.

The management of dependent activities between supply chain partners for the achievement of common goals.