Supply Chain Management


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Pages : 325; Paperback;
210 X 275 mm approx.

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Chapter Code : SCMC02


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Supply Chain Management Textbook

Supply Chain Integration : Overview

Effective supply chain integration enables firms to improve efficiency and effectiveness of their supply chain. An integrated supply chain can be defined as one which has achieved alignment of the members of the supply chain and their processes. In this chapter we discussed the process of achieving effective supply chain integration. We first discussed the nature of supply chain integration.

There are two types of supply chain integration-internal integration which aims at achieving the integration between functional areas, and external integration which aims at integrating the internal operations of the firm with that of its supply chain partners. Next we discussed the elements of a supply chain strategy - demand flow strategy, customer service strategy, technology integration strategy and collaboration strategy.

Later we examined the factors driving the supply chain integration - increasing customer satisfaction, the need to improve supply chain productivity, and the changing competitive environment. Then we examined a framework for developing and executing an integrated supply chain strategy.

This consists of: understanding the supply chain, evaluating the organization's position in the supply chain, creating and communicating a common supply chain vision, cultivating integrative mechanisms, and constantly re-evaluating and improving. Finally we examined the benefits that a firm obtains from supply chain integration and the barriers to effective supply chain integration.

Chapter 2 : Overview

Nature of Supply Chain Integration
Cross - Functional Process Integration External Integration

Factors Driving Supply Chain Integration
Increasing Customer Satisfaction
Improving Supply Chain Productivity
Changing Competitive Environment

Role of Organizational and Channel Support for Supply Chain Integration

Elements of Supply Chain Strategy
Demand Flow Strategy Customer Service Strategy
Collaboration Strategy Information Technology Strategy

Framework for Supply Chain Integration
Understanding the Supply Chain

Market Segmentation Describing the Supply Chains
Evaluating the Organization's Position in the Supply Chain
Building the Supply Chain Infrastructure Needed for Successful Integration Create and Communicate a Common Supply Chain Vision
Develop Integrative Mechanisms
Constantly Re-evaluate and Continuously Improve

Benefits of Supply Chain Integration
Increased Customer Responsiveness Increased Supply Chain Productivity

Barriers to Supply Chain Integration
Increase in Product Variety
Shorter Product Life Cycles
Customer Demands
Increased Outsourcing of the Firm's Activities.