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Methodology for Assessing Collaboration Strategies and Incentives in the Pulp and Paper Industry

In: Supply Chain Coordination under Uncertainty

Author

Listed:
  • Nadia Lehoux

    (Université Laval)

  • Sophie D’Amours

    (Université Laval)

  • André Langevin

    (École Polytechnique de Montréal)

Abstract

Under current economic conditions, several companies have decided to implement collaborations with their suppliers, distributors, and retailers, in order to share products and information efficiently as well as reduce their operational costs. Even traditional industries such as the forest industry are now seeking for new business relationships to outperform the competition. In this article, we propose a case study of collaboration between a pulp and paper producer and a wholesaler. In particular, we describe a methodology used to compare different collaborative approaches. We show that this methodology is useful to take multiple operational parameters and constraints into account, as well as to update planning decisions over time. We also discuss the different results obtained for the case study. We demonstrate that collaborative approaches such as CPFR and VMI may reduce network costs, but the savings obtained with these strategies must be distributed fairly. Furthermore, we analyze the use of several incentives to increase the value and strength of the collaboration.

Suggested Citation

  • Nadia Lehoux & Sophie D’Amours & André Langevin, 2011. "Methodology for Assessing Collaboration Strategies and Incentives in the Pulp and Paper Industry," International Handbooks on Information Systems, in: Tsan-Ming Choi & T.C. Edwin Cheng (ed.), Supply Chain Coordination under Uncertainty, pages 625-650, Springer.
    • Handle: RePEc:spr:ihichp:978-3-642-19257-9_25
    DOI: 10.1007/978-3-642-19257-9_25
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