Integration is pulling things together to make a whole. It is a co ordination within the supply chain. Internal integration
is the flow between marketing, buying and distribution
by ensuring customer demands. External integration is
using co ordination, cooperation and collaborations with other firms. An integrated supply chain can be defined as an association of customers and suppliers who, using management techniques, work together to optimize their collective performance in the creation, distribution, and support of an end product.
Advantages for integration is that they cost less than non integration which means the profit is increased, it is also ahead of competition so it doesn’t have others to compete with and it has a good speed of market.
Disadvantages are that it is difficult to integrate with supply chains, small companies and independent companies find it hard to work with because it is a big investment. Investments can be too much and it needs to be willingness.
In integration they have several integrates which is like having ‘too many eggs in one basket’ so if one of them gets more than the other it then becomes unfair for the store and they might decline which means integration will fail and their profit may decrease substantially.