Fashion style 07
ntegration can be used to improve performances at all stages of the supply chain. This is especially done when using advanced technology. There are 3 aims of integration, which follows the saying of the ‘Three A’s’. This stands for ‘agile’, ‘adaptable’ and ‘aligned’. One aim of integration is to respond quickly to sudden changes in supply or demand. This involves handling unexpected situations smoothly such as natural disasters or even computer viruses. Another aim of integration is being adaptable. This involves changing over time on economic progress; political shifts, demographic changes and technological advances reshape markets. The last ‘A’ is being aligned. This means that as each player maximizes its own interests, it also optimizes the chains performance at the same time.
There are both advantages and disadvantages to both types of supply chain management. To start with, integrated supply chains make it easier to negotiate with suppliers, there is an improved amount of cash flow as well as there being a reduced amount of waste and much more flexibility within the whole process. Despite this, integrated supply chains have high costs if ever required to switch to new data systems, there is a high investment time, money and resources needed to apply and overlook the supply chain in addition to integration relying on a buyer to work as a partnership and not having to focus just on the price alone.
On the other hand however, if a company were to deal with a non-integrated supply chain, it is much more cost effective and cheaper, easier to manage than the integrated supply chain and there is no need for new technology installments. Nevertheless, the disadvantages of using a non-integrated supply chain would include there being less communication between the supply chain stages, clothes reaching the market slower (so therefore retailers are not always one step ahead of their competitors) plus the process being much less flexible.
There are various examples of different stores that use the different types of integration. A few stores that use integration include: Ikea, Asda, Under Armour, Macy’s as well as Amazon Fresh. These stores always speed to the market and stay ahead of the competing retailers.
There are different circumstances that may lead to a retailer deciding to reject their company using integrated supply chains. Reasons for this could be down too it being to difficult to mix chains, not wanting to share sensitive information as it could make a retailer more vulnerable with competition or if the time taken to integrate is too long.
I