important in each stage of the supply chain as we need materials and information flow to work as smoothly. But to make this even more effective, having an improved integration can lead to an enhanced performance level in each stage of the supply chain, particularly when using innovative technology, for instance, 3D Printing, Remote working / Global conferencing, E.D.I etc...
Firstly, there are two categories in Integration which is Internal Integration and External Integration. Internal Integration is how you can improve the performances of division within the band itself. Gucci, for example, wants to improve information flow amongst marketing, buying, and distribution to guarantee that their customer demands are fulfilled in store. Companies try to the same transportation and delivery services for multiple brands so they can have a cross-brand coordination since they are faster, trustworthy and reliable.
External integration, the goal is to carry out the triple C’s which is Cooperation, Coordination, and Collaboration. These external companies work as one unit and try to minimums the number of strategic suppliers they use so it’s quicker and easier for the companies to get their products. Furthermore, working these external companies helps decrease the geographical distance which is very environmentally friendly as it releases less pollution. As well as that, it can also make the suppliers improve their responsiveness and flexibility as they are working closely together. An example of external integration is a partnership of DHL & WHSmith which they linked up to do a service to the consumers. They offer a parcel service from their stores and track other DHL parcel and can be delivered to the store which is an alternative to the Post.
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