Advantages and disadvantages to integration.
Advantages
improves the overall efficiency across the chain
Lower costs leads to increase profit
Reduced waste
Speed to market enables you to stay ahead of competition
Adjust to customer demand
Disadvantages to integration
Heavy investment time
Money and resources needed to overlook supply chain
Staff needed training
High cost of switching to new data systems reliant on one source of business
Case for rejection
In some cases integration can be rejected as it is a difficult process which requires lots of dedication and commitment to make it work. Some brands may not feel confident enough to invest in this and would rather not take the risk.
It is harder for smaller companies/organizations to achieve success as it is a very costly process.
Reasons for failure could be a lack of transparency and trust and being able to motivate everyone involved, different ideas and goals and lack of flexibility for an independent of fast growing business.
American Apparel supply chain.
American apparel choice of supply chain is an integrated chain. The companie arry out their processes "in house".
They use a vertical method of integration which lowers the companies transportaition costs and reduces its turnaround time. As a company American Apparel claim to have a high level of flexibility as there turnaround time is faster than most of its opposing competitors in the market.