All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. Challenges to Supply Chain Integration: Based on the case studies completed as part of this project, we conclude that well integrated supply chains are not ubiquitous at this time. There are certainly many success stories and many pockets of excellent supply chain integration. Blume solutions minimize risk, decrease complexity and reduce costs for the entire supply chain ecosystem. Traditional retailers and wholesalers need large storage locations close to major metropolitan areas, combined with accurate inventory control to ensure product availability. This pressure can easily turn into risks and issues that snowball throughout the network, causing significant problems: Supply chain managers must develop contingencies and mitigating action plans to prioritize and eliminate risks and manage issues when they occur. Incorporate supply chain consideration into product and service design decisions.7. of supply chain integration that firms can achieve. Consumers want retail goods immediately and online goods within a few days. Establish a vision of how financial and non-financial results will improve with supply chain integration.2. Drop shipping retail requires fast international services so that consumers receive goods quickly. Develop the capabilities and analytic tools required to make effective decisions in an increasingly complex and risky environment.12. Without trust and the willingness to collaborate, it is impossible to achieve aligned, consistent decision-making and actions required for the integrated supply chain.Organization and People, which structures include reporting structures, team membership, and roles and responsibilities and, as such, largely shape the ways people will interact and relate to each other in an enterprise. Equally important, however, are the processes and procedures that encourage and facilitate the use of that data for effective decision-making.Trust, which is at the heart of breaking down the functional and organizational barriers that impede true integration. Supply chain managers must deal with these issues promptly before they create delays, backlogs, bottlenecks and other issues. Alignment ensures that there is consistency in the direction and objectives as these plans and decisions are made.2. Business Strategy defines how the firm intends to compete in the markets or market segments it pursues. Supply chain integration can be a challenging undertaking for manufacturers. © 2020 ZDNET, A RED VENTURES COMPANY. Chan, F. and Qi, H.J. © 2020 Blume Global. Integration is now widely taken the central concept of successful supply chain management (SCM), because the implementation of SCM needs the integration of processes from sourcing, to manufacturing, and to distribution across the supply chain (Cooper et al., … Consumers have never had more choice, and every industry is facing disruption. Regulations, compliance and quality management demands strong agreements, contracts and controls with supply chain organizations. Supply chain integration is the process of creating cohesion and increasing connectivity throughout the entire value chain, from procurement to production planning to logistics. Develop customer-centric metrics.4. There are also many cases of failures and breakdowns in integration. The last decade has brought a dramatic shift in the nature of competition for most companies. Broadly speaking, a firm can compete on low cost or through differentiation. How Will U.S. Trade Policy Change Under the Biden Administration? The pressures on the role of the truck driver is making it a less attractive profession, and logistics providers are finding it more difficult to attract and retain the right people. These issues are exacerbated as port authorities and operators charge organizations to store goods at the port. Alignment refers to common vision, goals, purpose and objectives across organizations, functions and processes in the supply chain. Supply Chain Innovation for Competing in Highly Dynamic Markets: Challenges and Solutions investigates the role of innovation in the management of supply chains of today. Much of this will be down to predicting problems before they happen, building robust contracts and relying on strong relationship management, collaboration and prioritization to minimize the impact. eCommerce websites selling directly to consumers require fast last-mile delivery and local logistics. Product and Service Design, which must include supply chain considerations in product/service design decisions. Hussain A.H. Awad, Author is Assistant professor, Faculty of information system and technology, University of Banking and Financial Sciences, Amman/ Jordan (phone: 00962795134334; e-mail: The wrong organizational structure can exclude key stakeholders and key resources from important decisions and inhibit the collaboration needed to achieve alignment and linkage. Technological advances, particularly in information technology, coupled with globalization, the rise of complexity and shrinking time horizons are driving order-of-magnitude changes in the competitive demands on strategic management of business and on the management of supply chains.These competitive pressures have a strong direct effect on supply chain strategy and integration. Ever Since the Council of Supply Chain Management Professionals (CSCMP) Defined Supply Chain Management and the Council of Logistics Management (CLM) adopted the definition of logistics in 1984, the integration of a supply chain processes or activities became obligatory definition. An ongoing, chronic shortage of long-haul drivers is creating major issues with trucking capacity, leading to delays when transporting goods across countries. Build trust within and across organizations in the supply chain.13. Linkage ensures that the information necessary for decision-making is available, and that different functions and entities in the supply chain are working with the same data as decisions are made.3. Some features of the site may not work correctly. Abstract —Ever Since the Council of Supply Chain Management Professionals (CSCMP) Defined Supply Chain Management and the Council of Logistics Management (CLM) adopted the definition of logistics in 1984, the integration of a supply chain processes or activities became obligatory definition. Customer-facing Processes for Order FulfillmentSupply Chain Enablers are the final key to the puzzle. Establish the correct positioning of work on a global basis.6. Supply chain segmentation broadens the familiar concept of market segmentation to the consideration of differential supply chains (manufacturing plants, distribution centers, supply bases) to support the different market segments.4. Stay focused and consistent in relationships with customers and suppliers.9. Supply Chain Strategy and Vision, which defines the role supply chain management will have in the organization and in the pursuit of the business strategy.2. These firms have successfully implemented the concept of supply chain integration…, A Critical Analysis of Supply Chain Integration in the Agro-Food Industry, Supply Chain Management Integration: Critical Problems and Solutions, Supply Chain Integration and Logistics Management among BRICS: A Literature Review, Impact Of Supply Chain Integration On Business Performance And Its Challenges, Challenges of Supply Chain Integration: The Case of Soap and Detergent Manufacturing Companies in Ethiopia, Supply chain management: everlasting and contemporary research issues, Assess your business model strategy to sustain, Assessing the Challenges and Implementation of Supply Chain Integration in the Cocoa Industry: a factor of Cocoa Farmers in Ashanti Region of Ghana, Determining an optimal supply chain strategy, A framework for supply chain performance measurement, A Research on Supply Chain Integration Strategy Based on Virtual Value Net, Benchmarking Information Integration in Supply Chain Management: A Multi-channel Approach, Facilitating the Integration of SMEs to Supply Networks with Lean IT Solutions, Managerial Challenges within Networks: Emphasizing the Paradox of Network Participation, Corporate Directions in Supply Chain Management: Implications for SME Competences and Inter-Organisational Relations, Flexible intelligent relationship management: the business success paradigm in a stakeholder society, The Economics of Organization: The Transaction Cost Approach, View 17 excerpts, cites background and methods, By clicking accept or continuing to use the site, you agree to the terms outlined in our.