Nature of Supply Chain Integration
Cross -
Functional Process Integration External Integration
Factors
Driving Supply Chain Integration
Increasing Customer Satisfaction
Improving Supply Chain Productivity
Changing Competitive
Environment
Role of Organizational and Channel Support for Supply
Chain Integration
Elements of Supply Chain Strategy
Demand Flow
Strategy Customer Service Strategy
Collaboration Strategy
Information Technology Strategy
Framework for Supply Chain
Integration
Understanding the Supply Chain
Market Segmentation
Describing the Supply Chains
Evaluating the Organization’s
Position in the Supply Chain
Building the Supply Chain
Infrastructure Needed for Successful Integration Create and
Communicate a Common Supply Chain Vision
Develop Integrative
Mechanisms
Constantly Re-evaluate and Continuously Improve
Benefits
of Supply Chain Integration
Increased Customer Responsiveness
Increased Supply Chain Productivity
Barriers to Supply Chain
Integration
Increase in Product Variety
Shorter Product Life
Cycles
Customer Demands
Increased Outsourcing of the Firm’s
Activities.
Effective supply chain integration enables firms to improve
efficiency and effectiveness of their supply chain. An integrated supply chain
can be defined as one which has achieved alignment of the members of the supply
chain and their processes. In this chapter we discussed the process of achieving
effective supply chain integration. We first discussed the nature of supply
chain integration.
There are two types of supply chain integration-internal integration which aims
at achieving the integration between functional areas, and external integration
which aims at integrating the internal operations of the firm with that of its
supply chain partners. Next we discussed the elements of a supply chain strategy
– demand flow strategy, customer service strategy, technology integration
strategy and collaboration strategy.
Later we examined the factors driving the supply chain integration - increasing
customer satisfaction, the need to improve supply chain productivity, and the
changing competitive environment. Then we examined a framework for developing
and executing an integrated supply chain strategy.
This consists of: understanding the supply chain, evaluating the organization's
position in the supply chain, creating and communicating a common supply chain
vision, cultivating integrative mechanisms, and constantly re-evaluating and
improving. Finally we examined the benefits that a firm obtains from supply
chain integration and the barriers to effective supply chain integration.
Short Case Studies / Caselets