Supply Chain Integration- A Strong Business Network
Globalization has not only revolutionized the economic condition of the world, but has also added a few risks to the business process. With globalization came in the concept of using the low cost regions for manufacturing but the risks in this process comes from lack of visibility, reduced control over the manufacturing units, and an overall increase in the general management of the organization. A strong and seamless supply chain capabilities forms the backbone of an integrated global supply chain and will bring relieve to the customers in form of increased productivity and profitability.
A supply chain is made up of several linked elements depending upon the products or services. However, all supply chains starts and ends with the customer with planning, purchasing, inventory, production and transportation being the linkages in between. The essence of every supply chain solution should be to provide the client organisation or customer good infrastructure for visibility and control thereby facilitating efficient decision-making, flexible market response and efficient asset utilization. The strategic, tactical and operational decision making activities encompass a good supply chain process.
The supply chain integration basically focuses on issues related to vision, goals, purpose and objectives across the linked organizations. Alignment between the functional and technical processes of these organizations ensures consistency in their objectives whereas linkage ensures availability of information between organizational workforce and plays a major role in planning and decision-making.
With businesses spanning beyond geographical boundaries, the supply chain solutions of the organisations becomes an integral part of their business strategy. The profitability of any business depends on the level of integration between the external and internal environment of an organization. The advent of information technology, Internet communications and web-based softwares has paved way for development of ERP suites that provide technological supply chain management solutions and form the backbone of the organizations.
The increasing complexity and amalgamation of varied technologies, networking and computing, quality management and support functions have resulted in faster availability of information across the supply network. Supply chain integration facilitates the change from managing individual functions to integrating activities in a supply chain processes. This integration involves collaboration between buyers and suppliers, joint product development, common systems and shared information. The level of integration between the supply chain, customer service, order fulfillment functions of an organization is dependent on the organizations supply chain management support and its automation software.
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