Conflict in a supply chain can arise due to:

Conflict in a supply chain often stems from disagreement on goals, roles, or rewards among the various members involved. When members of the supply chain, such as manufacturers, wholesalers, and retailers, have different objectives or expectations, this can lead to friction and inefficiencies. For example, if manufacturers prioritize production volume while retailers focus on customer service, these differing goals can create misunderstandings, mistrust, and ultimately, conflict.

Moreover, unclear roles within the supply chain can lead to overlaps and gaps in responsibilities, resulting in frustration among members who may feel their contributions are not valued or recognized. Similarly, if rewards are perceived as unfair or unequally distributed, this can also generate conflict as members may feel demotivated or competitive in detrimental ways.

In contrast, a strong agreement on goals, common ownership, and effective communication tend to foster collaboration and alignment within a supply chain. Such conditions are beneficial and can mitigate the potential for conflict, thereby supporting the smooth operation of supply chain activities.