types of supply chain integration pdf

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It is a good place to start because it gives you the basic information that you need to build on. Notteboom (2004) indicates that competition within container transport industries has not only been reliant on the single player, but on the whole chain. Efficiency supply chain models include, the efficient chain model, the fast chain model and the continuous flow model. 3 0 obj Song and Panayides (2008) and Woo et al. 2. It can affect the success of a business and unfortunately also be the downfall of a business. These models are based on end to end efficiency. China 2UK 3USA 1. By integrating the best of both worlds, giants like McDonalds, Unilever and Amazon have been able to create the completely integrated supply chains that have elevated their business to a whole new level of success. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S>> The reality is all supply chains have elements of both efficiency and responsiveness, but each supply chain model can have a primary focus of either. For companies that are in highly competitive situations, it is critical to have inventory on hand to complete orders quickly. From the outside looking in, it can be difficult to define which model is being used. Unlike the efficiency models that are built on sameness and schedules these models require quite a bit of human interaction which of course leaves the system prone to human error. �|����G����d�? The overall business need is ultimately the driving force behind which model is going to be best for the business. This state of integration holds an essence and elements that encompass a complex network of characteristics stemming from its origin(s), SCM and SCI, as well as stemming from its unique nature. They must have the flexibility in their supply chain to quickly switch raw materials and other supplies. A plethora of supply chain management (SCM) definitions have been developed in recent years. Each model is similar in that it is part of a supply chain network and typically it is not one concrete supply chain model that is being followed, it is typically a hybrid of one or two of the models. Supply and logistics are the backbone of every business. Most industries that use an efficiency model do it to help save on costs or are offering low value items that are produced in very high volume. The idea behind “responsive supply chains” is that they respond on demand. With increased reliance on sole-source suppliers and expanded levels of supply chain integration, the pressure on each supply chain participant to consistently meet its commitments increases. Every supply chain should be efficient and responsive to deliver the best in support, improve productivity and meet the consumers demands. endobj Only in rare cases is the supply chain the older straight-line model, because there are typically suppliers coming from different directions and logistics moving in different directions and it is all happening simultaneously. Today thanks to the global economy the supply chain looks more like a web with the manufacturer in the middle of the web. There are several things that are determinants when reviewing the types of supply chain models and which one will deliver the support a business can depend on: Each model has unique qualities that can support the overall organizations goals. <> We will look at these 6 models and discuss important factors of each model. The basic models are good models that have served many businesses well, but to take a step above the rest, you should be thinking outside the box. Chapter two will discuss the different types of supply chain relationships and which processes could be linked between companies. All three of these models put efficiency first and are geared toward certain industries like paper industries, cement industries, commodity producing industries and even budget fashion industries. This extensive integration of the supply chain can be viewed as a shift from vertical corporate integration to a virtually integrated corporation (Magretta, 1998). KEYWORDS: Automobile Industry, logistics, lean and agile supply chain and supply chain. INTRODUCTION Since the middle of the 1990’s, the researchers and practitioners within the construction industry have moved towards Supply Chain Management (SCM) philosophy in order to make construction industry more effective and more efficient. Today’s market place requires supply chains that are both efficient and responsive to deliver what the modern business needs to stay competitive. The custom configured models focus on providing custom configurations especially during assembly and production. ?��H���Yl���v�8�X�p4�I�O�H���.��1�/_$�[0>�^� ֌�Th0�`[�|�廠a(��DEŸ�ND�⿀C The supply chain process flow in this type of model is all about speed and cost cutting. stream A good example is a manufacturer that produces products for different industries, their supply chain must be flexible to meet the needs of the specific client. supply chain integration, internal integration, integration issues, integration type, integration boundary . The fast chain model is ideal for manufacturers that manufacture products that are trendy with short life cycles. Consumers may not realize the unique value of a certain product and all they are looking at is the cost. ؾ���J�)��D]������B��v���Dj��)5ht�������O�zU"��8��j@!�4JO��,�U%��. expectations. Replacing unreliable members of highly integrated supply chains and rebuilding required levels of trust and knowledge can be an expensive and painful process.

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