Discussion About the Supply Chain Integration
Introduction
The supply chain indicates the supply and demand network made up of the raw materials suppliers, manufacturers, wholesalers, and the ultimate consumers (ARNDT, 2004). The supply chain management is the vital concept in the modern management. In the supply chain management, the supply chain integration is just an important management model. The supply chain integration just realizes higher value and competitive advantages of the whole supply chain through coordinating the businesses process and cooperating within the organization and among the different organizations (LEE, 2000). It does not only facilitate the coordination of the business processes in the supply chain, but
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There are several uncertainties in the beer supply chain. The uncertainty in the demand is a typical and basic one. Because of the intense competition and continuously changing customer demand, it becomes pretty hard to master the exact demand information in the various levels of the supply chain (MASON & TOWILL, 1998). Just on account of the uncertainty of the demand in the supply chain, the purchase and inventory become uncertain too. The reason is that each company in the supply chain just purchase the raw materials and arrange the inventory according to the demand from the lower level of the supply chain. Just by virtue of the uncertainty of the demand information, the demand deviation will be enlarged from the lower level of the supply chain to the higher one. The uncertainty in the supply chain is still called the bullwhip effect (LEE et al., 1997). Meanwhile, the uncertainties in the demand will still result in the uncertainty in the production because many manufacturers just make their production scheme according to the demand information. Thus, the uncertainty in the demand will lead to the production’s uncertainty directly. Apart from the uncertainties in the demand, purchase and inventory, in the supply field, there still exist some uncertainties. In the modern supply chain, the connections among the different levels are pretty tight, and emergent problems in any level of the supply chain will lead to the delay the whole supply
The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
In 2002 congress considered legislation authorizing $47 million to help develop supply chain integration standards. Since the introduction of the bill to integrate supply chains, The legislation, The Enterprise Integration Act of 2002, was enacted to authorize the National Institute of Standard and Technology to work with major manufacturing industries on an initiative of standards development and implementation for electronic enterprise integration (H.R. 2733 (107th): Enterprise Integration Act of 2002). According to the case background readings setting supply chain standard will improve supply chain management. In this paper I will discuss how setting supply chain
All supply chains are integrated to some point. One objective of increasing integration is focusing and coordinating the relevant resources of each participant on the needs of the supply chain to optimize the overall performance of the chain. The integration process, requires the disciplined application of management skills, processes, and technologies to couple key functions and capabilities of the chain and take advantage of the available business opportunities. Goals typically include higher profits and reduced risks for all participants, retailers, wholesalers, or manufacturers.
The first paper develops its idea based on previous research that was carried out by Frohlich and Westbrook that distinguishes the influence being played by supply chain integration on the performance of certain firms. This paper provides an overview of how manufacturing firms arbitrate the relationship their supply chain integration and its respective business performance. This paper discovered through vigorous research and improved work on previous studies that the proper application of a supply chain integration would lead to a significant improvement in business performance. The second paper confirms the relationship that exists
Supply chain management from the source to the final customer by aligning the capability of supplier manufacture, distribution channel and customer. To optimise all the process and thereby go beyond function excellence (excellence within department) and ensure cross-function integration and cross-function excellence (i.e. total excellence cross the company).By optimising the supply chain thus wish to achieve world class performances by companies by insuring that the total system from source to customer is full optimised and fully integrated. What are trying to do is to ensure that at each point we add value to the process (not wasted cost).
As we know that as far as the concept of global market exist it has gone beyond border and the ways of managing demand and supply are changing. In order to fulfill the basic purpose of have low production cost the companies are looking for set up in such countries where manufacturing and production cost be lowered by getting cheap labor and raw material. It is the process of acquiring the raw material and vendor to provide the right quantity, quality at right price and at right time calls for a dynamic
As companies debate on integration journey, it is obvious that organization of various types and material managers from different functional areas are seriously talking about supply chain integration explained Fawcett & Magnan (2002). They further explained that forward integration efforts are on pace or slightly ahead of backward integration derived from their research result scoring a mean of 4.33 (2002, p. 345). Therefore, firms cannot settle that whatever works for them will work for others as internal, backward, forward or complete integrated model serves at various divisions. As a matter of fact, it depends on the functional units that have to be integrated and what kind of product and services are offered by the company. Single-firm integration is very challenging tackling issues such as risk sharing and rewards across organizations, meshing information systems and coordinating measures is
Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of
Abstract Integration of supply chain activities and the technologies to accomplish it have become competitive necessities in most industries. Accordingly, the trend toward greater use of supply chain
Supply chain integration has essential elements which were revealed by literature review. Based on the combination of existing literature, it is concluded that the two most basic and crucial elements of supply chain integration are connectivity and simplification. The importance of these two
The integrated management of the supply chain is a topic that is becoming more important in the business world, given its importance, conjurations and development of enterprise networks. Which is why, today is the underlying logic of the structure of dynamic alignment ca, companies need to be integrated with your customers or markets in the context of a prevailing operating environment. The power of this structure rests on its ability to reveal the interaction between customer needs, helping to formulate appropriate response strategies, and then the successful implementation of these strategies by the relevant leadership, through the formation of cultural capacities internal, by raising awareness of the fundamental needs of customers and their buying behavior already dominant is necessary, as well as reducing delivery times [1].
The challenges that organizations face in supply chain integration is the ability to successfully coordinate activities across the supply chain so that they can improve performance in the areas of increase service level, reduce cost, better utilize resources, reduce bullwhip effect, and effectively respond to changes in the marketplace. According to Levi (2008),
Supply chain management is applicable to both manufacturing and service industries. To achieve Customer satisfaction & loyalty ,success for individual firms depends on how well the supply chain functions as a whole. The sharing knowledge of new products and technologies with the suppliers it creates the successful product. One of the key element for achieving supply chain effectiveness is establishing and nurturing trust across the organizational boundaries especially with suppliers(Hanfield & Bechtel, 2001)
Nowadays, in order to succeed in business market, instead of just focusing in their own management strategies, all organizations need to pay attention to other suppliers’ activities and customers’ demand. Since the global competitiveness is getting more and more intensive and the level of customers’ expectation is higher, every single business needs to concentrate and invest much more in its supply chain system. The reason is that the potential value of the supply chain is the core business of all enterprises. So what exactly is supply chain system?