What Is Supply Chain Integration?

To recover from the large-scale global supply chain, it is very important to choose a supply chain strategy.

What Is Supply Chain Management?

What Is Supply Chain Management?

Characteristics Of Supply Chain Strategy

1. Supply chain structure and decision-making of activities in different stages of the supply chain.

2. Select facilities with specific locations and different capacities.

3. Identify the product to be manufactured next to the location of the storage facility.

4. Determine the mode of transportation and the source of information collection.

Benefits Of The Supply Chain

1. A properly planned supply chain strategy helps to support business objectives.

2. Supply chain strategy has the opportunity to establish an ideal infrastructure to evaluate and analyze historical data to gain insights.

3. Effective supply chain strategy defines the position of raw materials and finished goods inventory in the supply chain.

4. The ideal supply chain strategy adopts the optimized design and modifies the internal product design. Keep similarities with rapid innovation.

5. The market continues to develop at a rapid speed, and the supply chain strategy helps to identify the changing demand and adjust accordingly.

The characteristics and benefits of supply chain strategy show the importance of the push-pull strategy debate in the supply chain.

What Is Push And Pull Strategy In Supply Chain Management?

What Is Push And Pull Strategy In Supply Chain Management?

Through a clear impression of the definition of push-pull strategy, find the relevance with different use cases. Different organizations have different requirements for their supply chain, especially to provide the best customer experience.

The main requirements of the supply chain involve adaptability to the current consumer demand, as well as the prediction of the future.

What Is Supply Chain Integration?

What Is Supply Chain Integration?

Horizontal Integration

Horizontal integration refers to the activities in the supply chain, from raw materials to consumers, including the change and flow of goods, and the generation, storage, and flow of related information, planning, organizing, and controlling the activities in the supply chain.

Vertical Integration

Vertical integration refers to the effective integration of suppliers, factories, warehouses, and shops. The manufacturing and distribution of products are carried out in the correct quantity, time, and place to meet the needs of customers and minimize the system cost.

What Are The Benefits Of Supply Chain Integration?

1. Improve the core business

2. Enhancing the ability to resist risks

3. Efficient information interaction

4. Reducing operating costs

5. Improving customer satisfaction

6. Successfully replicating the system.

How to Integrate Your Supply Chain?

Define Your Supply Chain Integration Goals

Do you need to reduce procurement costs, align business objectives with partners, acquire businesses to improve market dominance, and speed up delivery time and reliability? The defined integration goal should guide the whole supply chain integration process.

Analyze The Logistics Of Your Current Supply Chain

How does information flow between businesses and different links in the supply chain? How and how fast does the cash flow between partners flow? Identify bottlenecks, communication barriers, slow suppliers, overpriced suppliers, and problems that interfere with business efficiency and profitability.

Determine If You Need Horizontal Or Vertical Integration Or Both

Determine whether the supply chain integration goal is best achieved through horizontal integration, vertical integration, or both:

Horizontal integration: Horizontal integration involves a company buying a company to eliminate competition and immediately expand its customer base, or a partnership in which each company agrees to focus on a specific market segment or geographical area.

Vertical integration: Vertical integration involves the business purchase or partnership with widget manufacturers to improve integration and efficiency and ensure fair widget prices and timely delivery.

Define The Parameters Of Supply Chain Integration

The following four levels of integration are provided:

Baseline: Maintain isolated information within each department or “supply chain link”.

Integration: All information is shared equally throughout the supply chain. The goal of information sharing is to improve the efficiency of the supply chain.

Internal integration: Information is shared among all departments and organizations that make up the supply chain. Each department or organization operates as an independent and independent unit.

External integration: An alliance involving departments or companies that make up the supply chain.

Achieve Your Supply Chain Goals

Taylored service is a fully integrated 3PL provider, engaged in wholesale, retail, and direct performance to consumers. Cooperate with full-service integrated logistics providers such as Taylored Services to help e-commerce enterprises of all sizes effectively provide services to customers, allowing companies to expand when needed, without a large investment.

Conclusion

With the passage of time, the influence of choosing an appropriate supply chain strategy is constantly evolving. The push-pull strategy in supply chain operation has unique advantages and functions for the supply chain operation of enterprises. The possibility of using a hybrid model is also important.

As the world recovers from the large-scale global supply chain, it is very important to choose a supply chain strategy. Choose a specific supply chain strategy to meet the needs of customers and push the business forward! If you want to know more, you can contact us!

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