Horizontal chaining refers to the collaboration and integration among companies operating within the same stage of the supply chain. It involves building relationships and sharing information, and capabilities to enhance efficiency and effectiveness.
One major benefit of horizontal chaining is the optimization of processes and resources. By sharing best practices and expertise, companies can reduce duplication of effort and improve operational performance. This can lead to cost savings and increased competitiveness. Another advantage is the improved responsiveness to customer needs. Through horizontal chaining, companies can better coordinate their activities and capabilities to meet customer demands in a timely manner. This can result in increased customer satisfaction and loyalty.
