Non-integrated Supply Chains
In supply chain’s you have another method which is 'non-integrated'. This is where the products are sourced from multiple places e.g. Newsagents and poundland.
A non-integrated supply chain means that the business who buys the products from different companies don't have ownership nor any control over the production of
products which are being sold. Thereforethey can't always be certain that they will have enough stock to meet the customers needs.
The business is at a slight disadvantage
because they have a disconnected flow
of product and information, the delivery rate is unpredictable. In a non-integrated supply chain the final product is made up of numerous entities, specialised in specific disciplines, who each contribute to the creating of the final product but
none hold any responsibilities. A non-integrated supply chain means that the business who buys the products from different companies don't have ownership nor any control over the production of products which are being sold. Therefore they can't always be certain that they will have enough stock to meet the customers needs.
Furthermore there are also companies
which have a combined supply chain for example a supermarket e.g. Tesco who have both integrated and non integrated supply chains. Due to them selling own branded products 'Tesco's own' where they will have ownership of production.
But also have non integrated due to them selling different branded products e.g. Heinz, Cadbury's, Hellman's, Hovis etc. meaning that they don't have any ownership with them.
By having a non integrated supply chain the fact that different uncoordinated actors are involved in the process increases uncertainties. By having a non integrated supply chain it requires a strong infrastructure from customers/primes/agencies which is difficult to put in place.