performance (Cao et al., 2010; Min et al., 2005). The importance of these benefits becomes even more urgent due to highly challenging and competitive business environment. Thus, synergistic effects along with economies of scale bring major advantages for independent collaborative SC organisations, allowing them to maximise asset utilisation and aсquirесomplemеntаry resоurcеs and cаpаbilitiеs thanks to each other (Barratt, 2004). Therefore, this section has reviewed the importance of SC integration and collaboration from literature from operational, managerial and strategic perspectives. The next part of this paper will examine relevant approaches and initiatives of these business processes in SCM. 2.3 Review of collaboration and integration models Since 1990s, when some SC firms have started to work in collaborative ways, the implementation of approaches such as Quick Response (QR), Continuous Replenishment (CR), Efficient Consumer Response (ECR), Vendor Managed Inventory (VMI) and Collaborative Forecasting Planning and Replenishment (CPFR) has emerged (Holweg et al., 2005; Chopra and Meindl, 2013). While Dong et al., 2014 state that these concepts are often influencing each other and continuously changing, the following part of PMA will analyse two latest models - VMI and CPFR in details. 2.3.1 VMI model Including some features of CR, ECR and CPR; VMI is the practice of supply management, in which inventories are controlled, planned and managed by the supplier on the basis of expected level of demand (Chopra and Meindl, 2013; Dong et. al, 2014). The supplier thus has access to customer’s data about the state of inventory and generates purchase orders (ibid.). For better illustration of the VMI, the generic model shown in figure 3 produced by Marquès et. al (2010) will be explored.