There is a lot of potential available from multi-tier supply chain collaboration, "with suppliers responsible for 80%of total product value in industries such as automotive, supplier cost, quality, innovation, and delivery performance remain critical to business success."

So say the consultants at McKinsey is a recent article on the company's web site.

McKinsey chose to illustrate that potential in the graphc below:

It's a little tough to absorb.

McKinsey say there are three key barriers to such collaboration: integration technology; the operating model (standards for the exchange of more complex data); and trust.

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