Supply Chain Integration Case Study

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Introduction The shift from a linear supply chain system to networked system has shown the need for just-in-time delivery and conveyance of information at a timely manner among firms and functional areas. These happen to be one of the key competitive advantages of today’s businesses and thus, achieved in most cases through integration. Organizations in the past were reluctant about integrating with other firms as they feared that their business processes might be stolen or cooperate identity will be lost. Competitors feared that their processes will be copied and the key to their success will be adopted forcing them to lose market share. This has lead to the difficulty of information dissemination and high cost of raw material acquisition,…show more content…
The collaboration of firms have helped them to better understand their suppliers supplier and customers customer, and at the same time who their rivals are and how to best serve their customers. Although, a few major setbacks can be lack of information, trust, transparency and who holds a higher hierarchy in decision making during collaboration however, with the use of modern technologies and regulating bodies, these are easily sorted out at timely manner and efficiency improved. Therefore, to understand the rhetoric of supply chain management, the nature of supply chain integration, the primary models and the advantages it offers, one has to explore the content of this paper. It furthermore spans the shortcomings and development of integration. Understanding the primary models of integration such as internal, backward, forward or complete integration will help organizations make the right choice to suit their…show more content…
It is important to note that information plays a very crucial role in an effective supply chain integration process. The nature of supply chain integration The nature of supply chain integration is disseminated into four primary models namely: The cross-functional process integration, backward integration with valued first-tier suppliers, forward integration with valued first-tier customers and the complete forward and backward integration. Internal, cross-functional integration process Internal, cross-functional process integration identified as the most important of supply chain integration according to Fawcett & Mangan (2002). This integration process covers the activities within the organization that ends with the provision of goods to the customer. It also involves multiple functional areas in the company such as marketing and sales, production and manufacturing, and logistics unit to fulfill its
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