...- 19, 2010, Hong Kong Supply Chain Integration: Definition and Challenges Hussain A.H Awad, Mohammad Othman Nassar 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. Many firms have extended their chain from upstream and downstream to include other vendors, agents of vendor, and customers. These firms have successfully implemented the concept of supply chain integration with spectacular results after they recognize and manage the integration challenges of supply chain. This research is a humble scientific attempt to shed more on the challenges and the obstacles that those companies faced during their success journey stand behind finding integration in their supply chain. By reviewing the available literature about the supply chain integration challenges we didn’t find a single source able to present all these challenges that may face the organization during its implementation of supply chain integration. The main contributions for this paper are integrating all the of supply chain integration challenges in one source. These contributions will be very helpful for the organizations that establish the integration in their supply chain Index Terms— Supply chain integration, Challenges of supply chain integration. I. INTRODUCTION To succeed...
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...FUTURE Chapter 16—SUPPLY CHAIN PROCESS INTEGRATION AND A LOOK TOWARDS THE FUTURE For those for whom integration is not happening, the future is bleak and getting darker.[i] There is a lot of value that is “trapped” between the processes trading partners use to transact business, and when companies work together, they can unlock that value and share its benefits.[ii] LEARNING OBJECTIVES After completing this chapter, you should be able to: • Discuss and compare internal and external process integration. • Discuss the requirements for achieving process integration. • Describe the barriers to internal and external process integration, and what can be done to overcome them. • Understand the importance of performance measurements in achieving internal and external process integration. • Understand why it is important to align supply chain strategies with internal process strategies. • List and describe the eight key supply chain processes, and how trading partners integrate these processes. • Discuss a number of the latest trends in the areas of process management and process integration. CHAPTER OUTLINE Introduction Achieving Internal Process Integration Extending Integration to Supply Chain Trading Partners A Look at Trends and Developments in Integration and Process Management PROCESS MANAGEMENT IN ACTION—An Interview with Zack Noshirwani, Vice President of Integrated Supply Chain for Raytheon The Raytheon...
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...FUTURE Chapter 16—SUPPLY CHAIN PROCESS INTEGRATION AND A LOOK TOWARDS THE FUTURE For those for whom integration is not happening, the future is bleak and getting darker.[i] There is a lot of value that is “trapped” between the processes trading partners use to transact business, and when companies work together, they can unlock that value and share its benefits.[ii] LEARNING OBJECTIVES After completing this chapter, you should be able to: • Discuss and compare internal and external process integration. • Discuss the requirements for achieving process integration. • Describe the barriers to internal and external process integration, and what can be done to overcome them. • Understand the importance of performance measurements in achieving internal and external process integration. • Understand why it is important to align supply chain strategies with internal process strategies. • List and describe the eight key supply chain processes, and how trading partners integrate these processes. • Discuss a number of the latest trends in the areas of process management and process integration. CHAPTER OUTLINE Introduction Achieving Internal Process Integration Extending Integration to Supply Chain Trading Partners A Look at Trends and Developments in Integration and Process Management PROCESS MANAGEMENT IN ACTION—An Interview with Zack Noshirwani, Vice President of Integrated Supply Chain for Raytheon The Raytheon...
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...(Shell) ability to be more competitive with other integrated oil majors in the global supply chain. Shell’s goal is to be “the world’s most competitive and innovative energy company” (Shell 2013). First, the macro-processes involved in the supply chain of Shell are introduced. Forecasting techniques were researched to see how these can be applied to demand management in Shell. Third, business process integration was investigated to improve the supply chain in Shell. Finally, operations and production strategy was synthesized to respond to the changing demands in the modern global environment. Discussion The Macro-processes Involved in the Supply Chain of Shell Company Chosen and the Reason. The company I chose for this assignment is Shell. The key reason is I work for Shell. I have access to global supply chain managers who will help with this assignment. I contribute to the planning operations in the global supply chain. My contribution is the production of petroleum liquids for refinery processing. Gas produced is sold directly to customers as fuel. I believe a lot was learned during the review and analysis of Shell’s global supply chain. Shell’s Problem. Shell uses a global scorecard to monitor its yearly success. Figure 1 shows the scorecard for 2012. As a global energy company, Shell did not perform well in delivering the oil and gas required to fuel its refineries or supply raw gas to its customers. As a result, their total shareholder return (TSR) was below...
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...Introduction Strategic Supply Chain Management At Tesco Commerce Essay Tesco plc is a UK multinational with diversified retail operations in 14 countries in Europe, America and Asia. Tesco is the 3rd largest retailer in the world with £ 62.5 billion sales in 2009, having 4811 stores worldwide and 472000 employees. The core business is grocery items and main market is UK with c70 % of total annual sales. Tesco offers more than 70000 food and non food products and services by using different store formats as shown below in the diagram. The diagram shows different type of store formats and product and services offered by each format. The above complex structure makes supply chain operations even more complex to manage. This paper attempts to explore how the complex supply chain is managed at Tesco and looks at different supply chain practices implemented by Tesco. The paper discusses the supply integration practices adopted in the industry and looks at Tesco’s approach towards integrating the supply chain. Finally, the paper suggests some recommendation for improving Tesco supply chain. 2 Tesco Supply Chain Analysis Supply chain has been defined by many authors in different ways; in the context of Tesco’s supply chain the definition given by Stevens is most appropriate: “A system whose constituent parts include material suppliers, production facilities, distribution services and customer linked together via a feed forward of materials and the feedback of information”(Stevens...
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...International Journal of Production Research Vol. 48, No. 17, 1 September 2010, 5137–5155 Supply chain performance measurement: a literature review Goknur Arzu Akyuz* and Turan Erman Erkan Department of Industrial Engineering, Atilim University, Kizilcasar Mahallesi, 06836 Incek Go¨lbasi, Ankara, Turkey (Received 19 February 2009; final version received 2 June 2009) This paper is intended to provide a critical literature review on supply chain performance measurement. The study aims at revealing the basic research methodologies/approaches followed, problem areas and requirements for the performance management of the new supply chain era. The review study covers articles coming from major journals related with the topic, including a taxonomy study and detailed investigation as to the methodologies, approaches and findings of these works. The methodology followed during the conduct of this research includes starting with a broad base of articles lying at the intersection of supply chain, information technology (IT), performance measurement and business process management topics and then screening the list to have a focus on supply chain performance measurement. Findings reveal that performance measurement in the new supply era is still an open area of research. Further need of research is identified regarding framework development, empirical cross-industry research and adoption of performance measurement systems for the requirements of the new era, to include...
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...Conclusion 16 Ford Motor Company Executive Summary As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall performance. Managers could overcome the complex and inaccurate manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. Further improved Supply Chain management will improve Supply Chain responsiveness and increase shareholder value to keep investors interested in the company. Ford Motor Company...
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...advantage of 3PLs ? a) Cost Reduction b) Cost Control c) Minimizing Revenues d) Employee conflict 4. Which one of the following is not a supply chain strategy framework ? a) Collaboration Strategy b) Supply Flow Strategy c) Customer Service Strategy d) Technology Integration Strategy 5. Which of the following is not an area of responsibility for a logistics manager? a) Purchasing b) Warehousing c)Information systems d) Marketing 6.The companies manage their supply chains through online transaction by means of a) Information b)Transportation modes c) Competitors d)The Internet 7. Using which of the following companies manage their supply chains ? a) Internet b) Competitors c) Information d) Transportation Mode 8. According to Professor Mentzer and colleagues, the supply chain concept originated in what discipline? a) Logistics b)Marketing c) Operation d) Production 9. Which one of the following is not a part of supply chain ? a) Employees. b) Services. c) Information. d) Materials. 10. The use of Web technologies to manage warehousing and transportation processes is called a) e-logistics b) e-replenishment c )Downstream processing d)Collaborative planning 11. The E-SCM process that includes integrated production and distribution processes is a) e-procurement b)Supply chain replenishment . c)Collaborative planning. d) e-logistics. 12. Which one of the following is a factor that hinders growth of 3PLs ? a) Cost Reduction...
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...Supporting Technology in the Automotive Supply Chain: A Suppliers Focus” DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Dept.of Commerce Prof. & Hod of Commerce Department Govt. T.R.S.College, Rewa Govt. T.R.S.College, Rewa (MP) INTRODUCTION: In today’s manufacturers’ world, suppliers play an ever more important role. The purchased materials of an average manufacturer account for over 50% of the cost of goods sold [RHS97]. Suppliers therefore have a large and direct impact on costs, in addition to quality, technology, speed, and responsiveness of buying companies. Reinforcing this point, Ragatz, Handfield et al.[RHS97] noted that the “effective integration of suppliers into product value/supply chains will be a key factor for some manufacturers in achieving the improvements necessary to remain competitive”. It is no longer company competing against company, but supply chain versus supply chain. Figure 1: Integration in the supply chain. Source: [FW01] Therefore the ultimate success of a single business will depend on management’s ability to integrate the company’s intricate network of business relationships. Figure 1 shows this integration along the supply chain. The management of multiple Permission...
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...Research paper Supply chain management integration and implementation: a literature review Damien Power Department of Management, The University of Melbourne, Melbourne, Australia Abstract Purpose – The purpose of this paper is to review a sample of the literature relating to the integration and implementation of supply chain management practices from a strategic viewpoint. Design/methodology/approach – The literature is examined from three perspectives. First, supply chain integration covers issues relating to integration of core processes across organizational boundaries through improved communication, partnerships, alliances and cooperation. Second, strategy and planning examines supply chain management as a strategic matter for trading partners, along with factors relating to the amount of planning required. Third, implementation issues concern factors critical for successful implementation, as well as issues specific to inter and intraorganizational aspects of supply chain initiatives are contained in this sub-group Findings – An important emergent theme from the literature is the importance of taking a holistic view, and the systemic nature of interactions between the participants. At the same time, it is also apparent that this requirement to take such an holistic and systemic view of the supply chain acts as an impediment to more extensive implementation. The strategic nature of adopting a supply chain wide perspective, on the one hand provides significant potential...
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...TITLE: INTEGRATION OF SUPPLY CHAIN MANAGEMENT IN PUBLIC HEALTH: A case study of USAID SCMS Project, Nigeria. NAME: Ogbolu', B, Emeka Supply Chain Operation Department, John Snow Inc. Abuja, Nigeria ORGANIZATION: USAID Supply chain management system project, Nigeria PROBLEM OR ISSUE TO BE ADDRESSED “The more integration, the better the performance of the supply chain” (Bagchi et al., 2005). SCM concept is defined as “integration of business processes” (Cooper et al., 1997). According to Lee (2000) the integration of supply chain does not only reduce costs, but it also worth full for the company, and all its shareholders. The ideal condition is that the whole process across the supply chain is designed, managed and unified as a unit. However, different peoples have different opinions, some are disagree with that integration and close cooperation with suppliers and customers is the best resolution in every case. Bask and Juga (2001) think that we have to to reevaluate the dominant vision of integrated supply chain management and propose that polarization of strategies in supply chains can lead to separation and give rise to semi-integration rather than full integration. For others intensive integration might not be in every area of SCM but it can be in some special areas such as quality management and performance measurement while in other areas it is valuable to have limited integration. Bagchi and Skjoett Larsen 2002 suggest a contingency approach to supply chain integration...
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...Supply Chain Management Executive Decision The purpose of this business report is to guide the investors on the decisions they should make for designing and organizing their supply chain for their line of power hand tools, including electric drills, saws and sanders. This report will explore the option of using vertical integration as the supply chain strategy and they approach the investors should take towards operations management. Metrics, issues, organizational structure, and cost effectiveness will also be presented in this business report. The investor will have within this report also, the results that provide sustainable dominant competitive advantage to have the right amount of the right product in the right place at the right time. Supply Chain Management Supply Chain Strategy In any manufacturing business the first this to consider is the supply chain strategy that will effectively fit and grow with your business. In researching the right supply chain strategy for your business which is to manufacture and market a line of power hand tools, including electric drills, saws and sanders, the supply chain to be used is vertical integration. Vertical integration is “developing the ability to produce goods or services previously purchased or actually buy a supplier or distributor” (Heizer, Render, 426). Because you the investor choose to own and operate your own production facility and are also considering ownership of any other component of the products...
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...Make-or-buy decisions are focused on helping a business understand whether it is more advantageous to buy a particular part or product from an outside vendor or to produce the part themselves. Keiretsu is a type of supply-chain strategy that focuses on integrating the two strategies of building relationships with a few suppliers and vertical integration. As with traditional make-or-buy decisions, Keiretsu does include purchasing goods from suppliers. However, make-or-buy decisions and Keiretsu would not typically be considered a type of outsourcing. 2. Keeping a product generic as long as possible before customizing is known as __________. postponement Keeping a product generic as long as possible before customizing is known as postponement. This process is very useful when making somewhat generic products (like computers, printers, televisions, etc.). While the external features of these devices will be different, the primary mechanisms that make each device function are similar. Thus, it makes sense for a company to postpone putting the external elements on a computer or television until farther along in the production cycle so that a business can more easily meet customer expectations. Forward and Backward integration are two types of vertical integration. Forward...
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...(IT) an important enabler of effective supply chain management * Typically spans the entire enterprise and beyond, encompassing suppliers on one end and customers on the other. * Includes systems that are: * internal to an individual company * external which facilitate information transfer between various companies and individuals Questions * What is the impact of business process change on IT implementation? * What are the goals of IT from the perspective of supply chain management? * What IT components are needed to achieve the goals of supply chain management? * What are the supply chain component systems and how should they be approached? * What are decision support systems and how do they support supply chain management? * What criteria should be used to select decision support systems? * What drives the selection of best of breed systems? 14.2 The Importance of Business Processes * Recent study by MIT, PRTM and SAP * Companies that invest mostly in business processes do better than those who invest in IT only and lack the appropriate business processes. * Investments only in technology without the appropriate business processes lead to negative returns. Challenges * Identify measures to characterize supply chain effectiveness * KPIs and SCOR Model are objective ways * Develop measures to characterize the level of maturity of the business process and the information technology employed...
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...Name: Noor Atifah Binti A Wahid Matric number: 2013498534 Group: KBM244 5A The strategic Fit of supply chain integration in the TFT-LCD industry D.Y. Sha, P.K. Chen and Yung-Hsin Chen Volume 13 · Number 5 · 2008 · 339–342 the aims of this study to know in term of cost, quality, delivery and flexibility whether it can satisfy the firm with relationships between complex co-operation, manufacturers, suppliers, and also distributors and to know whether breaking the cost of constraints, can TFT-LCD support the manufacturers and what a types strategies of supply chain integration that can support it. For innovative electronic technologies and prosperous business perspective it will create a great opportunity when TFT-LCD (thin film transistor-liquid crystal display) was come out. Manufacturers, suppliers, and set plants/distributors have relationships that will have constraint of cost and complex co-operation, so that manufacturers of TFT-LCD need struggle to control the price, quality, time of delivery, and flexibility of production. Taiwan TFT-LCD manufacturers was successful in term of cost of constraints and relationship between complex cooperation and their partners to strategic coordination and integration. It was reported in executive of interviews series. The upstream is manufacturing of TFT-LCD supply chain component of features suppliers, midstream refers to manufactures and downstream refers to set plants/distributors in the industry structure was pointed out Venables...
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