What term describes the arrangement between Company A and Company B relying on mutual support in a supply chain?

The term that best describes the arrangement between Company A and Company B relying on mutual support in a supply chain is intercompany scope. This concept emphasizes the collaborative relationship between two or more companies that work together within the supply chain to achieve common goals, share resources, and optimize processes. By forming partnerships or alliances, businesses can enhance their operational efficiencies, improve service levels, and respond more effectively to market demands.

Intercompany scope is particularly beneficial in supply chain management because it recognizes the interconnected nature of organizations working towards shared objectives, such as cost reduction, risk mitigation, and innovation. Such collaboration often leads to streamlined communication, improved forecasting, and a more agile response to changes in the market or supply chain disruptions.

In contrast, intracompany scope would refer to activities and operations within a single company, focusing on internal processes rather than collaboration between different entities. Independent operation implies that companies are working separately without aligning their goals or coordinating efforts, which is contrary to the idea of mutual support. Vertical integration describes a strategy where a company expands its control over multiple stages of the production process, which may involve consolidating suppliers or distributors, but does not inherently imply mutual support between separate companies.