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Rapid technology development can increase integration difficulties and further increase costs. The requirement of different business skills venturing into new portions of the supply chain can be challenging for the firm. [9] Another problem that may stem from vertical integration is the collapse of goals among the various firms in a supply chain.
Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems, and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires a continuous information flow.
an "extended" supply chain includes suppliers of the immediate supplier and customers of the immediate customer; an "ultimate" supply chain includes all of the organizations involved in the supply of the product or service. In each case, the flow of information and finances is part of the chain as well as the product or service. [10]
The benefits to creating greater integration allows for the same benefits that come from implementing supply-chain governance strategies in a broader sense (as integration is a part of that governance strategy). Disruptions in the supply chain are lessened, [8] inventories are reduced to only exist at the necessary levels, [13] unnecessary ...
Key components of Integrated Business Planning include: a) Enterprise Model: Demand chain model; Supply chain model; Finance chain model; b) Integrated Planning: Creating collaborative plans across multiple functions; c) Enterprise Optimization: Generating optimized plans considering various constraints and financial integration
Collaborative planning, forecasting, and replenishment (CPFR) is an approach to the supply chain process which focuses on joint practices.This is done through cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.
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