Supply Chain Integration

Supply Chain Integration

Introduction

The paper strives to understand the overall concept of supply chain integration and the benefits associated with it. As this world has turned into a global village, the integration of supply chain is significant to enhancing customer services, increasing productivity and gaining substantial returns on investment. The paper aims to describe the entire concept of Supply chain integration by providing the definition and various processes involved in it along with the benefits and challenges of supply chain integration.

Discussion

Supply chain integration involves joint working of buyers and suppliers, combined product development efforts through shared information and systems. Likewise, top management of many companies believe that augmenting the return on investment and product development is not possible unless there is an integration approach involved in the business process. The integration between back-end systems such as human resources and finance, and the front-end systems such sales and marketing along with the overall supply chain integration is significant to enhancing customer services, increasing productivity and gaining substantial returns on investment (Songini, 2002).

Supply Chain Integration

Over the period of time, many organizations have understood the benefits of gaining competitive advantage. Therefore, the organizations started searching for new business systems that would aid in gaining competitive edge over other organizations. Some of the strategies that helped the organizations in enhancing production processes and successfully competing in a diverse business environment include: Theory of Constraints, Supply Chain Management (SCM), Just in Time and Total Quality Management strategies. The strategy of SCM is hugely influenced by the advancement in internet and globalization. Therefore, the organizations adopted the mechanism of heavy reliance on information technology in order to enhance competitiveness and transform their business, dramatically. The technology was used to reengineer business processes to eradicate inefficient processes, which give rise to SCM models. An ...