Integrated supply chains

Running Head: Business and Marketing
Integrated supply chains
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Integrated supply chains
Integrated supply chain refers to an upcoming concept whose centre of attention is joining together requirements of buyers directly into production schedule of suppliers (Bolstorff, 2003). Combination of the requirements of buyers directly into production schedule of suppliers enables companies to enter into meaningful competition in which case they experience reduced competition harms (Boone, 2002). The aim of the operation (supply chain integration) is to ensure that products are delivered in time and promoting reliability. It is evident that joining together of requirements of buyers directly into production schedule of suppliers make the operations in the supply chain more effective (Boyer, 2005). Supply chain is a network which comprises of suppliers, storage facilities, transporters, distributors and retailers who involve themselves in the production, delivery and sale of certain products. Supply chains are generally comprised of numerous companies coordinating activities with the aim of protecting themselves from dangerous competition.
Integrated supply chain’s key challenges
There are several challenges faced by companies that are involved in operations involving supply chains which are integrated. Although many benefits are experienced by the companies involved in operations based on supply chains which are integrated, like reduced competition effects, the following challenges have considerably interfered with smooth operations of the involved companies. For instance, it becomes a major challenge for companies to put up a vision regarding ways through which non-financial and financial outcomes will be able to improve with integration of the supply chain (Bolstorff, 2003). This is due to the complications which are associated with the process of integration.
Secondly, development of culture, organization and people who have the capacity to effectively shore up the vision of the supply chain turns out to be problematic (Boone, 2002). Despite the fact that putting up of supply chains which are integrated has many benefits, the issue of development of culture, organization and people who have the capacity to effectively shore up the vision of the supply chain becomes a challenge to those who undertake the practice. This therefore limits the involved firms’ effectiveness in fulfilling the aspired objectives.
Thirdly, putting up of supply chains which are multiple in their nature, aimed at fulfilling different market segments and customer needs turns out to be difficult (Boyer, 2005). For supply chains which are integrated to be effective, operations ought to be made easier by ensuring that supply chains which are multiple in their nature, aimed at satisfying different market segments and customer needs are created. However, creation of such supply chains turns out to be difficult and therefore the process effectiveness is interfered with. Correct positioning establishment of work especially on worldwide basis also tends to be difficult. This trims down the chances of having supply chains which fulfill the objectives of the concerned individuals.
In addition, so...