An Integrated supply chain Improves coordination so material and information flows work together effectively, this improves the overall performance of the business on each stage of the chain.
Internal- How the processes within the brand can be made more efficient (eg. information flow, introduce automated processes, cross brand coordination)
External- how can the external relationships be improved(eg. small number of strategic suppliers, work as one unit, share info & goals, reduce geographical distance)
Department Store (Example: Selfridges) - A department store would probably focus on using the external method of integration, this is because usually they sell lots of different brands meaning for the company to work efficiently as a whole targets and information needs to be synchronised universally.
Discount Store (Example: TK MAXX) - A Discount Store might also find and external method of integration most effective because they will need to have a small numbers of suppliers and quantity of products to be in competition with other stores and deals. It is important that information is shared throughout because it allows margin for error especially when suppliers cannot meet demands or there is a problem.
Speciality store (Example: Max Spielmann) - A speciality store would function most effectively internally as it is key that the information flow between marketing, buying and distribution is contributing towards fulfilling customer demand. This means that speed is essential when attempting to increase material flow.
Supermarket (Example: Sainsbury's) - A supermarket may work internally and externally depending on the customer demand, the location the product is distributed to and the size of the supermarket. A supermarket aims to have the most efficient supply chain because products sold are always in demand and therefore always need to be available for sale.
Agility Adaptability Alignment
Integrated and Non-Integrated Supply Chains