Question: 2 . 4 Supply Chain Integration Supply chain integration is a large - scale business strategy that brings as many links of the chain as
Supply Chain Integration
Supply chain integration is a largescale business strategy that brings as many links of the chain as possible into a closer working relationship with each other. The goal is to improve response time, production time, and reduce costs and waste. Every link in the chain benefits. An integration may be done tightly through a merger with another firm in the supply chain, or loosely through sharing information and working more exclusively with particular suppliers and customers. In the latter case, the supply chain is not truly "owned" by one company, but the various links operate most as if one company to increase efficiency and benefit everyone through steady, reliable business.
Despite the strong overall trend toward increased supply chain integration, the extent of integration varies greatly from industry to industry. According to Murphy and Knemeyer supply chain integration is a term that embodies various communication channels and linkages within a supply network. However, it should not be confused with collaboration. While supply chain integration is the alignment and interlinking of business processes, collaboration is a relationship between supply
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