Integration- is an act or instance of combining into an integral whole.
Integration within a supply chain is the involvement and use of different strategies and methods to co-ordinate the various processes within a supply chain. This is to ensure that everything flows and runs as efficiently as possible. This works by aiming to improve the performance at each stage so material and information flows work efficiently, leading to an improved performance for every stage within, advanced technology is a key factor to an improved supply chain.
There are two types of integration:
Internal- This is how the process within the brand/company can be made more efficient and example of this could be using advanced technology. It helps to improve the information flow within allocated areas such as marketing, buying and distribution. his is to ensure that the customers demand of the brand is met and fulfilled in store. This could also involve an automated process within the Delivery challan to speed up and improve material flow, cross brand coordination within the company, for example multiple brands use the same transportation methods.
External- This how the external relationships that are linked within the brand can be improved this would be the partners and suppliers outside of the company. This involves sharing information, goals and potential risks; in order for this to work efficiently both companies must work to gain trust so they can cooperate, co-ordinate and collaborate to the required standards.
DHL and Primark external integration
In November 2012 DHL opened a new logistics Centre in Monchengladbach, Germany for the fashion chain or Primark. DHL and Primark have a longstanding relationship where they work together to ensure all parcels and delivery's can be transported and reach Primark's store efficiently so that products and materials can be displayed instore to meet the customers demands. There service offers customized strategies and solutions across national borders. There is a new logistics Centre plus transportation to Primark stores in Germany, Belgium and Austria.
This image is an example of the how Primark benefits from the services along the entire supply chain. It allows there company to add extra value to the service they provide.
Technology is a needed modern source it allows companies to communicate better and becomes a necessity to structuring a supply chain and integration it allows companies to connect both globally and through other information systems.