Supplier operational integration
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Primary objective of operational integration is to cut waste,
reduce cost, and develop a relationship that allows both
buyer and seller to achieve mutual improvements
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Integration can take many forms
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Buyer providing detailed sales information to supplier
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Buyers and suppliers working together to redesign linked
processes
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Eliminating duplicated activities performed by both the buyer and
supplier
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Can provide incremental savings of 5% to 25% over the
benefits of volume consolidation