The Challenges of Supply Chain Integration

Supply Chain Management

Supply chain management is a crucial process that entails a range of activities required to control, plan and as well execute the flow of products from raw material acquisition to the production, all the way to the distribution of the products to the final customers. A supply chain manager is charged with the task of evaluating all the available chains of supply to determine the most efficient and cost-effective chain to integrate (Stevens & Johnson, 2016).

Challenges with Supply Chain Integration

Supply chain integration refers to close coordination and alignment within a supply chain by employing a shared information management system. However, there are often numerous challenges with supply chain integration experienced by organizations which the undertaking of the assignment seeks to explore.

Lack of Customer-Centricity

There are numerous obstacles organizations face when trying to integrate supply chain. However, the predominant obstacles include “lack of customer-centricity” and “mistrust.” In relations to customer-centricity, Stevens and Johnson (2016) presents that all through various organizations tend to be proud of being customer-oriented, their pride is not always the case. The arguments posted on the article present an argument depicting that the organization’s performance metrics are always internally focused with just very minimal inputs from customers and suppliers.

Mistrust

The element of mistrust has immensely contributed to the failure of supply chain integration in most firms. The challenges arise from the companies’ perceptions about suppliers as potential adversaries. As a consequence of their view, the firms are never willing to share any information with the suppliers (Stevens and Johnson, 2016). An evidence is provided in the article of an incidence in which some suppliers have been subjected to the dilemma in the negation process in which they end up supplying shoddy goods and services as a result of the low prices given. This presents an approach lacking collaboration between the suppliers and the producing firms which a great barrier to integration.

References

Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), 19-42.