Supply Chain Coopetition: A Simulation Model to Explore Competitive Advantages in Logistics

Abstract

Supply chains continuously face pressure to increase efficiency and differentiation to support business continuity. A not yet fully explored way to face this challenge is coopetition, where two competitor companies decide to partner on specific functions to get benefits and differentiate themselves from other companies. This project uses data from two world-renowned food manufacturing companies in Brazil as a case study to evaluate the quantitative benefits of the coopetition approach in terms of transportation cost, CO2 emissions, and service level. Using a simulation model, this study demonstrates that the supply chain coopetition can drive importantbusiness advantages. This research also shows that if companies adhere to the coopetition approach without implementing collaborative policies, the overall costs, CO2 emissions, and service level benefits are approximately around 5%, which may not be enough to motivate the companies to get onboard. Therefore, the study proposes policies that can leverage the reduction of outbound transportation costs up to 25%, the decreasesin average lead time up to 10%, and the drop in total CO2 emissions up to 23%.