INTEGRATION ISSUE IN SUPPLY CHAIN

MANAGEMENT

FURKAN SEZGIN 62215216405

NUR IZZAH SYAHIRAH BINTI ZAIN 62212216284
NURNAJIHA LAILI BINTI ABD LATIF 62212216049
INTRODUCTION TO SUPPLY
CHAIN INTEGRATION

WHAT IS SUPPLY CHAIN Process Integration means

INTEGRATION? coordinating & sharing
information & resources to jointly
"Supply Chain Integration is manage a process
how everyone in the company
and its trading partners work in
sync to achieve the same
business objectives via
integrated business process
and information sharing"
Supply
Chain
Integratio
n
PROCESS
IS EASY
Align SC strategies with Key SC
Strategies Objectives
Concept of integration

-association of customers and

suppliers who using management
techniques.
-focusing and coordinating the
relevant resources of each
participants the integration process Let’s start with
the first set of
requires the disciplined application slides
of management skills, process and
technologies.
“
Costs of integration
time devoted to managing, training and
support
investment in supply chain integration
software and compatible information
systems
effort devoted to becoming a better
customer
risks of production stopped
The earthquake that shook Taiwan in
September 1999 showed how a power
supply disruption in one country can
have worldwide reverberations
through an entire industry. Damage to
two electric power substations was the
primary cause of a shutdown of
Taiwan's computer-chip industry.
Qualitative & Quantitative measure
-relies on words as its unit of analysis and its means of
understanding.
-for example, customer satisfaction and product quality
-measure the performance and compare or track the
performance or products
-have two types : 1) non-financial measure
2) financial measure
Non-financial measure
-cycle time
-customer service level
-inventory level
-resource utilization ability to
perform
-flexibility and quality
Financial measure
-to maximize the revenue by
maintaning low supply chain costs
IN TWO OR THREE
COLUMNS

Yellow Blue Red

Is the color of Is the colour of the Is the color of
gold, butter and clear sky and the blood, and
ripe lemons. In the deep sea. It is because of this it
spectrum of located between has historically
visible light, violet and green been associated
yellow is found on the optical with sacrifice,
between green spectrum. danger and
and orange. courage.
A PICTURE IS
WORTH A
THOUSAND
WORDS
A complex idea can be
conveyed with just a
single still image,
namely making it
possible to absorb
large amounts of data
quickly.
LET’S REVIEW SOME
CONCEPTS
Yellow Blue Red
Is the color of gold, Is the colour of the clear Is the color of blood,
butter and ripe lemons. sky and the deep sea. It and because of this it
In the spectrum of is located between has historically been
visible light, yellow is violet and green on the associated with
found between green optical spectrum. sacrifice, danger and
and orange. courage.

Yellow Blue Red

Is the color of gold, Is the colour of the clear Is the color of blood,
butter and ripe lemons. sky and the deep sea. It and because of this it
In the spectrum of is located between has historically been
visible light, yellow is violet and green on the associated with
found between green optical spectrum. sacrifice, danger and
and orange. courage.
Obstacles to Process
Integration Along the
Supply Chain

One of the obstacles is The Silo Mentality. It

is a
concept of I win, you lose. For example,
using the
cheapest supplier to reduce the cost,
ignoring
the customer, assigning few resources to
new
product or service design.
Lack of Supply Chain
Visibility
Sometimes, it can be difficult to syncronize
supply chain operations with trading
partners. However, RFID(Radio Frequency
Identification) technology promises to add
real-time information visibility to supply
chains. Technology boards & user boards
are being formed now to develop standards
& electronic product codes (ePCs) for the
RFID industry
Lack of Trust
Successful process integration between
partners requires trust, as with silo mentality
and lack of information visibility, trust is seen
as the major stumbling block in supply chain
management. Trust occurs over time between
supply chain partners, as each participant
earns trust while it builds its reputations
among the other businesses.
 Lack of Knowledge

In a survey of 122 executives practicing SCM,

43 % said lack of core SCM skills and
knowledge was the greatest obstacle within
their own organizations, and 54 % echoed this
opinion for their trading partners. Firms
successfully managing their supply chains
must spend significant time influencing and
increasing the capabilities of themselves and
their partners.
Demand Updating
Whenever a buying firm places an order, the
selling firm uses that information as a predictor
of future demand. Based on this information,
sellers update their demand forecasts and the
corresponding orders placed with their suppliers.
As lead time grows between orders placed and
deliveries, then the safety stock also grow and
are included in any order as they pass up the
supply chain. Thus, fluctuations are magnified as
orders vary from period to period and as the
review period change, causing frequent demand
THANKS!
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