In your own words. What is an integrated supply chain? What are the key elements/challenges in an integrated supply chain? What are the specific benefits to firms that implement superior supply chain management?
Integrated supply chains to be explored Alan Johnson. Manufacturers' Monthly. Sydney: May 2007. pg. 24.
The four main departments in a supply chain are: purchasing, operations, distribution, and integration. An integrated supply chain (ISC) is a process that strategically integrates all the levels of functions in a supply chain. An ISC bears the responsibility of planning and managing all the activities in a supply chain across all locations, and business divisions, from the design of product, purchasing of parts, manufacturing, transportation, and all logistics activities.
The key elements of an integrated supply chain are:
• Vertical integration of supply chain functions at all levels, from the initial product design all the way through to the delivery of the final product to the customer.
• There is a singular accountability for the entire supply chain.
• The members of the chain share a common directive—to deliver the product safely to the customer in a timely manner.
• Since this information is shared throughout the supply chain, there is consistency in communication and the products delivered.
• Since the ISC starts at the purchasing department, the purchasing manager has the final say on the ISC decisions.
The challenges of an ...
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