Integration & Non-integration
The new method used nowadays in supply chain, is Integration. The overall meaning of the word integration is the action or process of combining different aspects whether it is a brand or a company.
“Integration is when the company merges together with the other facilities used to produce the product whether it’s the raw materials, manufacturing, transportation and the support services. This is done in companies so that the production if the product is quicker and easier. In integration all the facilities under the company name would need to hold up their end of the bargain.”
Benefits of integration.
Flexibility:- One of the benefits of integration is having the flexibility, due to the fact that in such a competitive field so many companies will try to bring out something new and improved so that their companies will be noticed over the other especially if it’s got to do with technology because customers always want the latest source of communication. For example if a new product is launched, an electronic could leverage its integrated supply chain to source the parts. This will enable them to activate a marketing plan and get a prototype, which will then eventually lead to the design stage in just a few weeks.
Profit margin:- Another benefit from integration is profit margins. When operating with flexibility and inventory management could lead to a lower cost structure, which results in higher profit margins. By responding rapidly to the customer environment, small businesses are capable of competing as well as maintaining and growing their top and bottom links.
Intergrated
&
Non-intergrated