Collaborative Commerce describes the cooperation between trading partners in the supply chain. Enabled by the Internet and integration technologies, it has created new ways for business partners to work together. Companies now exchange proprietary data, manage projects and cooperate on product design through web servers. That being said, the case of the success and profitability of collaboration is already won.

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Obvious Reasons to Love and
Hate Collaborative Commerce
Collaborative Commerce describes the cooperation between
trading partners in the supply chain. Enabled by the Internet
and integration technologies, it has created new ways for
business partners to work together. Companies now exchange
proprietary data, manage projects and cooperate on product
design through web servers. That being said, the case of the
success and profitability of collaboration is already won.
Why do people love collaborative commerce? Let us count the
ways.
 Collaborative commerce results to a transparent and
seamless business chain.
 It encourages innovation.
 It reduces time to market.
 It concentrates on core competencies.
 It reduces inventory by announcing actual demand.
 It speeds up business cycle times.
 It cuts down cost of transaction.
 It results to higher levels of customer satisfaction.
Transparency has forged better business relationships not only
between partners, but among suppliers and customers as well.
It allows flexibility in the course of disruptions and encourages
innovations in the upsurge of new needs. Moreover, it offers
the ability to deliver prognostic and dogmatic analytics in the
supply chain. When companies deal with their suppliers in a
uniform way, it can increase its efficiency by automating the
flow of paperwork.
Collaborative commerce allows you to design products that
meet your customers’ needs. It also allows you to bring them to
the market quickly, have a head start on your competitors and
achieve higher satisfaction levels. However, it also offers some
disadvantages.
 It can be cost intensive for small and medium-sized
businesses.
 It is a new concept. Not all people know, understand
and accept collaborative commerce.
 Since it reduces competition, it may reduce
innovation.
 It fosters dependency from partners.
 It requires strong personal relationships.
Collaborative commerce improves competitiveness among
partners and competitors. It provides your company competitive
advantages through faster time-to-market, reduced inventory,
and higher innovation rate. It improves processes along the
supply chain and leads to higher customer satisfaction.
Undoubtedly, these pros outweigh the above cons.