Problems with fragmented supply chains
•Organisations within the same supply chain should co-operate to get final customer satisfaction.
•They should notcompetewith each other, but with organisations in other supply chains.
Benefits of integration
•lower costs –due to balanced operations, lower stocks, less expediting, economies of scale, elimination of activities that waste time or do not add value, and so on
•improved performance –due to more accurate forecasts, better planning, higher productivity of resources, rational priorities, and so on
•improved material flow, with co-ordination giving faster and more reliable movements
Benefits of integration (cont.)
•better customer service, with shorter lead times, faster deliveries and more customisation
•more flexibility, with organisations reacting faster to changing conditions
•standardised procedures, becoming routine and well-practiced with less duplication of effort, information, planning, and so on
•reliable quality and fewer inspections, with integrated quality management programmes.
Co-operation and conflict
•Normally, a supply chain consists of distinct organisations, each working for their own benefit.
•So why should they co-operate?
•Why should one company work to benefit another?
Co-operation and conflict (cont.)
•The first problem with external integration is overcoming the traditionalview of organisations as adversaries.
•When an organisation pays money to its suppliers, people assume that one can only benefit at the expense of the other.
•Each is concerned only with their own objectives and will –when convenient to themselves –change specifications and conditions at short notice.
Problems with fragmented supply chains•Organisations within the same supply chain should co-operate to get final customer satisfaction.•They should notcompetewith each other, but with organisations in other supply chains.Benefits of integration•lower costs –due to balanced operations, lower stocks, less expediting, economies of scale, elimination of activities that waste time or do not add value, and so on•improved performance –due to more accurate forecasts, better planning, higher productivity of resources, rational priorities, and so on•improved material flow, with co-ordination giving faster and more reliable movementsBenefits of integration (cont.)•better customer service, with shorter lead times, faster deliveries and more customisation•more flexibility, with organisations reacting faster to changing conditions•standardised procedures, becoming routine and well-practiced with less duplication of effort, information, planning, and so on•reliable quality and fewer inspections, with integrated quality management programmes.Co-operation and conflict•Normally, a supply chain consists of distinct organisations, each working for their own benefit.•So why should they co-operate?•Why should one company work to benefit another?Co-operation and conflict (cont.)•The first problem with external integration is overcoming the traditionalview of organisations as adversaries.•When องค์การจ่ายเงินให้ซัพพลายเออร์ คนสมมติว่า หนึ่งสามารถเฉพาะได้รับค่าใช้จ่ายอื่น ๆ•Each เกี่ยวข้องกับวัตถุประสงค์ของตนเองเท่านั้น และจะ – เมื่อสะดวกตัวเอง – เปลี่ยนแปลงข้อกำหนดและเงื่อนไขที่แจ้งให้ทราบสั้น ๆ
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