In order to increase efficiency, lower costs, or improve service levels, businesses at the same level of the supply chain—such as rivals or businesses in related industries—cooperate horizontally. Transportation pooling, shared warehousing, and cooperative forecasting are a few examples. In non-competitive fields like procurement or logistics, horizontal collaboration can be advantageous to both parties, despite the fact that it may seem counterintuitive. Particularly in markets with high logistics costs or limited capacity, it promotes sustainability, lowers redundancy, and improves responsiveness.
