During the 1990’s some companies initiated an integration process through the
implementation of the SCM approach. SCM is “the integration of key business
processes from end user through original suppliers that provides products, services,
and information that add value for customers and other stakeholders” (Lambert,
Cooper & Pagh, 1998). This integrative philosophy involves internal and external
integration. Internal integration refers to the coordination, collaboration and integration
of Logistics with other functional areas, while external integration refers to the
integration of a firm’s logistics activities with those of their customers and suppliers
(Stock, Greis & Kasarda, 1998).