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An Integrated Supply Chain (ISC) is one that has full responsibility across the corporation (including different divisions, business units and geographies) for the planning and management of all activities involved in end-to-end supply chain processes, including direct sourcing and procurement, conversion/manufacturing, and all logistics management activities.
Reduce costs Reduce duplication of effort Improve quality Reduce lead time Implement cost reduction program Involve suppliers early Reduce time to market
Increase sales volume Increase customer loyalty Reduce cost Improve demand data Improve profitability
Variability
Visibility of these flows enhances the organizations ability to manage, control, and affect change proactively
Visibility
You cant manage what you dont see: Up- and downstream visibility into product, information and money flows
Vertical Integration
Vertical Integration
Raw material (suppliers) Backward integration Current transformation Iron ore
Steel
Automobiles
Integrated circuits
squeezing
Forward integration
Distribution systems
Circuit boards
Dealers
Labelling
Postponement
Measures of integration
Access to planning system Sharing production plans Joint EDI access / networks Knowledge of inventory levels Packaging customization Delivery frequencies Common logistical equipment / containers Common use of third-party logistics
Partnership
Marketing Operations
Information system
supplier
customer
supplier
customer
Product replenishment
Integrated suppliers
Synchronized production
Continuous replenishment
Reliable operations
Cross-docking
Enabling technologies
EDI
EFT
ABC
Continuous replenishment
Joint
Enabling technologies
Effective
inventory management Cross-dock operations Continuous replenishment Effective logistics and product flows Quick response
information sharing Automated order generation Bar-coding and the use of other scanning technology
References
White Paper on the Integrated Supply Chain Aerospace Industries Association Operations Management by R. Dan Reid & Nada R. Sanders Principles of Operations Management, 5e, and Operations Management, 7e Heizer /Render, Prentice Hall http://www.cessna.com/index.html http://www.ceeandgee.com/index.php - C & G International, Inc. http://www.transportgistics.com/index.htm