The supply chain is the simple process of product manufacturing right through to the consumer. Often, each part of the chain works separately and ends up clashing over issues and cause backlogs in the chain. The idea behind integrated supply chain management is that all parts of the chain work together as one well-oiled machine, which works better for everyone including the end-user. Throughout this article, we will outline how this process works.
One of the most important parts of integrated supply chain management is making sure information is shared freely between all parties. One of the best ways to do this is to use cloud-based technology and have all members of the chain placed onto one central infrastructure. This way, each area can get updates and view metrics in real-time, without having to rely on word of mouth. Bridging the gap between suppliers, manufactures, and the end-user is important.
The end goal of the integrated supply chain is fantastic and looks easy on the surface. However, the journey is long and requires considerable skill. The first part of the system is deciding on which vendors will be used. You need to think deeper than the cheapest option, you need them to be able to fulfill your orders on time. Once all parties have agreed to work together, they all need to meet up and discuss what they need out of the relationship. The integration needs to hold some benefit to all parties, otherwise, what’s the point!
Making it Work
In an ideal world, suppliers would drop parts off as close to the area they’re needed as possible. Part of the integration process requires producers to communicate with the suppliers and provide training on where to drop certain gear. On the flip side, if the manufacturers don’t maintain a clear path, the supplier will come across issues. When there are multiple suppliers, clearly label where each drop point is.
Integrated supply chain management plays an important role in minimizing waste and strengthening the bonds between suppliers and manufacturers. Although the road is long, the result is worth it.