Opinion - (2022) Volume 11, Issue 5
Received: 05-May-2022, Manuscript No. iem-22-70315;
Editor assigned: 07-May-2022, Pre QC No. P-70315;
Reviewed: 12-May-2022, QC No. Q-70315;
Revised: 18-May-2022, Manuscript No. R-70315;
Published:
23-May-2022
, DOI: 10.37421/2169-0316.2022.11.352
Citation: Lyion, Michael. “An Overview on Integration of Supply
Chain.” J Ind Eng Manag 11 (2022): 352.
Copyright: © 2022 Lyion M. This is an open-access article distributed under the
terms of the Creative Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium, provided the original author
and source are credited.
An organization of customers and suppliers that collaborates to maximize their collective performance in the development, distribution, and support of a product is referred to as an integrated supply chain. Although the individual businesses in the chain are only connected by trust, common goals, and voluntary contracts, it may be beneficial to picture of the participants as the divisions of a large, vertically integrated organization. Independent suppliers frequently deal with competing demands from numerous customers, as opposed to captive suppliers (parts of a major organization that normally serve the parent corporation first). All supply chains are intertwined. Increasing integration aims to optimize the overall performance of the chain by concentrating and coordinating the relevant resources of each participant on the needs of the supply chain. To connect the chain's main operations and capabilities and take advantage of the commercial opportunities available, the integration process necessitates the disciplined use of managerial skills, processes, and technologies. Increasing earnings and lowering risks for all players are usual goals.
Traditional unmanaged (or minimally managed) supply chains are characterized by the following factors: (1) antagonistic relationships between customers and suppliers, including win-lose negotiations; (2) little regard for sharing benefits and risks; (3) short-term focus with little concern for mutual long-term success; (4) primary emphasis on cost and delivery with little concern for added value; (5) limited communications; and (6) little interaction between the OEM and suppliers more than on the OEM's own operations. Integrated supply chains are defined by partnerships with extensive and open interactions and tend to acknowledge that all parties should profit from the relationship on a sustainable, long-term basis. Supply chain integration is a constant process, and it can only be optimized if OEMs, clients, and suppliers collaborate to strengthen their connections and when everyone involved is informed of important activities taking place at all levels of the chain. By directing and aiding lower tier suppliers, first-tier suppliers can play a significant part in fostering integration. Wal-complete Mart's supply chain integration of the Pampers product line from P&G serves as an illustration of multi-tier integration. In turn, P&G collaborated with 3M to combine the manufacturing of adhesive strips with the Pampers facility [1,2].
Imagine a flock of redwing black birds flying over a marsh to represent a well-integrated system of independent members. Every bird in the flock climbs, dives, or turns simultaneously without any visible signal. That is a system that is integrated! Like this, for the supply chain to remain competitive, members must respond to changes in the business environment coherently. The global trends and forces listed below are pushing supply chains to become more integrated: cost competitiveness that is higher. Since internal operations are now much more efficient, OEMs are looking to cut costs even more by increasing the effectiveness and cooperation of their supply chains. shorter product life cycles: The Model-T Ford, for instance, had an extended period of competitiveness. The average lifespan of a personal computer (PC) is less than a year, and this trend toward shorter product life cycles is still present. Faster product development cycles - To stay competitive, businesses must shorten the time it takes to produce new goods. A new product's early debut is frequently rewarded with a sizable market share and enough sales volume to significantly reduce expenses. Globalization and customization of product offerings: Customers around the world are wanting and able to purchase a wider range of goods that cater to their needs. Mass customization is the newest marketing catchphrase. greater general qualities Demands for improved overall quality have grown because of rising customer income and more intense competition to meet their expectations. Their supply chains are also being burdened by the rising demands placed on OEMs for improvements in product design, manufacture, cost, distribution, and service. Supply chain integration refers to the ability of all stakeholders' information and communication systems to communicate information in a seamless manner during the planning, execution, and completion of all transport and logistical operations across the course of a product's lifetime [3-5].
To achieve excellent supply chain performance, supply chain integration is acknowledged as a key aspect. This is because it provides a variety of competitive benefits, including complete transparency from supplier to consumer. The cloud platform MIXMOVE makes this simple to accomplish. You may receive all the information you need to make the best decisions by layering our solution on top of your current ones without changing or interfering with your current IT environment.
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