Supply chain integrations goal is to provide oversight of the whole supply chain. In theory this does not sound difficult, but the problems lie with all the actors and the programs they use for their portion of the supply chain.
If they do not talk, then it takes longer to find needed information. For supply chain integration to work, a company has to have visibility from the producers, to manufacturing, storing, and shipping all the way to their customer (Khurana, 2020).
It helps a business be able to properly forecast how long it will take to resupply either its stores or warehouses. Being able to successfully do this enables them to meet customer demand and improve their integrity with customers.
Finally, with an integrated supply chain, a company can have flexibility. With flexibility, a company can react to changes like competitors action and demand (Khurana, 2020). This would mean that if a company notices that products are starting to sell quicker, they have the ability to redirect inventory to meet that demand.
Khurana, M. (2020, August). Top 5 Benefits of An Integrated Supply Chain. Inspirage. Retrieved from https://www.inspirage.com/2016/09/top-4-benefits-integrated-suppy-chain/.
Supply chain integration is an essential element of all successful organization. Creating and maintaining an effective supply chain is one of the main components of assessing and meeting consumer needs. Having a coordinated operation within a supply chain between suppliers and retailers can assist in the procurement, development, and delivery of products and goods.
One of the main benefits of having an integrated supply chain is having the ability and flexibility to change certain process and operations to either change how a product, or parts of a product, are distributed and moved throughout the supply chain. Having the agility and relationships established within an organization’s supply chain gives an organization the ability to make such adjustments in a timely and costly manner.
Another major advantage to having an integrated supply chain is having link within the supply chain on the same network. Having a supply chain on the same network allows data to be easily accessible to everyone (Hoey, 2019).
Allowing a supply chain to have access to the same data helps with overall efficiency of the supply chain and allows for the organization to see what areas of the supply chain require more attention so adjustments and improvements can be made. Aforementioned, having the ability to be more flexible allows for cost savings, which eventually leads to an increase in profit and a decrease in waste.
Hoey, B. (2019, January 8). 5 benefits of supply chain integration. Retrieved March 16, 2021, from https://blog.flexis.com/5-benefits-of-supply-chain-integration