Supplier collaboration has captured much attention in the press and at industry conferences and events. At one level, companies seem to be getting the message about the benefits of collaboration. For example, the practice of sharing forecasts on demand and in some cases on inventory is relatively widespread. One study shows that 39 percent of 100 global companies surveyed are already using automated supplier communications and transactions to streamline process cycles, reduce data errors, and lower operating cost.

Yet a big divide still often exists between the ability to share data and the real-life execution. So the research firm IDC is correct when it writes “…in general, real collaborative planning and execution among supply chain partners has not really taken off yet.”

Real collaboration requires the integration of (existing) demand data, inventory data, and automated transactions into one overall process between buyer and supplier, followed by the extension of the collaborative space in the direction of the logistics services provider. At IBM, we've been striving to accomplish that—starting with supplier collaboration and then extending down and out through the supply chain network.