Integrated Supply Chain

Integrated Supply Chain

An Integrated Supply Chain (ISC) is the one that has full responsibility for the management and planning for all the activities involved in the supply chain processes. Supply Chain Management is a holistic approach for achieving efficiency, quality, and cost reduction into every process. Information technologies, including the Enterprise resource Planning (ERP) are the core of integrated supply chain systems. An integrated Supply Chain(ISC) allows companies to review business processes and systems across multiple suppliers, and disparate platforms to follow components and materials wherever they are expanding traditional supply chain management beyond tracking information, finances and materials as they move from supplier to manufacturer.

'Integrated Supply Chain' delivers a thorough understanding of how organizations can improve their supply chain, information technology, purchasing, procurement and logistics processes and operations. Integration changes the supply chain into a network of relationship among the trading partners. This means linking it through a computer system.

Effectiveness of ISC in Organizations

Companies rely on supply chain processes for a high level of customer satisfaction and service while meeting sales and the profit target in the same time. Supply chain integration has proven beneficial for companies as it brings together quality, purchasing, logistics, suppliers and clients with the aim of making each other work efficiently together. The supply chain integration process is an eye opening and a promising one which enables companies to develop trust and to start working collaboratively rather than independently. Synergies and efficiencies quickly develops between companies involved in the supply chain that lowers the cost at each level establishes a system of co-interest and co-support in keeping the supply chain run smoothly. Some of the benefits of supply chain integration include: 1) Reduces administrative costs purchasing over speeds and reduces Quality Assurance spending. 2) Storage and inventory requirements reductions 3) Fully loaded containers with streamlined transportation 4) Partnerships with customers and suppliers based on experience and trust with a shared expression of getting things right the first time. 5) Low optimal performance due to shortage of supply 6) Tight supply chain integration improves inventory management, means few under or overstocked requirements. Overstocking may result in greater storage costs while under stocking means losing customers to the competition. Tighter integration facilities just-in-time inventory system production, in which companies manufacture, and assemble products as the orders are assigned. 7) Tight inventory control and flexible operations lead to a reduction in cost which results ...