Supply Chain External Fragmentation

SUPPLY CHAIN EXTERNAL FRAGMENTATION
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The process of planning, implementation as well as control efficiency in cost and materials is referred to as supply chain management. The flow of material calls for goods in process and finished goods, in addition to related information from point of primary production through processing up to the final consumer. The high performance of supply chain is the fundamental objective to provide products that conform to customers demand as well as providing products that are of highest value. The increased global competitiveness requires cost competence, speedy and reliability of the supply chain (Holmberg, 2000). Supply chain management has become a strategic matter in the management of every organization by ensuring that the chain has to control on value addition for optimal customer satisfaction. Supply chains that are efficiency enhance market dominance by an organization since companies are looking forward on developing superior supply chain performance so as to acquire a competitive advantage in the market.
Supply chain fragmentation demonstrates that little information is shared among departments and this is an attitude portraying that a fir m has a self-centered attitude and does not have the willpower to foresee the c hanging market environment, creating an obstacle to improve performance. IKEA is a retail store that operates at the last part of supply chain. The retail outlet management have claimed to be pressured between its consumers and the supply company, furthermore, the operation costs and sales of the retail outlet have their priority set equally (Holmberg, 2000). The top management of the retail store focus was on increased sale and cutting of costs. Due to the fixed budget of the store, it was not possible to increase sales by hiring more sales personnel.
The supplying company was stressed to trim down costs, but the company focus was on incr...