Learning Objectives
LO 16-1: Discuss the importance of process integration in managing supply chains.
Process integration is the sharing of information, collaboration, and coordinating of resources to jointly manage a process. This is important to managing supply chains because to accomplish process integration one must (1) identify key trading partners, (2) establish supply chain strategies, (3) align key process objectives with those strategies, (4) develop performance measures for each integrated process, (5) assess and improve external process integration, and (6) reevaluate the integration efforts as needed.
LO 16-2: Summarize the obstacles to successful process integration.
The following are obstacles to process integration. Silo mentality is failing to see the big picture; essentially taking an “I win, you lose” attitude. Lack of information visibility is the inability to share or retrieve trading partner information in real time. Lack of trust is a result of fear of sharing information because one believes the other party will take unfair advantage. Lack of knowledge of process skills needed to facilitate the long-term benefits of supply chain management.
LO 16-3: Describe the issues associated with supply chain risk and security.
Supply chain risk includes the interruptions in the supply of goods and services caused by a variety of issues. The issue may be related to quality, safety, shortages, security, environmental compliance, natural disasters, etc. Supply chain security issues can be intentional disruptions in supply chain operations, activities seeking to endanger personnel, or sabotage of the supply chain infrastructure.
Chapter Outline
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