Integrated supply chain management refers to the productive approach to supply management whereby a business enterprise employs a centralized system to manage the business operations such as distribution, logistics, and suppliers rather than splitting the operations into multiple systems.
The integrated supply chain management was created to exhibit great organizational ability, predictability, and control, to provide an extremely efficient way to manage business operations and increase productivity.
The following highlights the other benefits of integrated supply chain management.
Integrated Supply Chain Management Increases The Flexibility of Businesses
Any company that wants to remain successful must be ready to adapt to any kind of situation. Employing a non-centralized supply chain is time-consuming, it also impairs the smooth running and reconciliation of business operations. This makes it that much difficult to adapt to unique circumstances.
An integrated supply chain management provides a centralized system that can run all business operations with no extra delay, it also allows the business to adapt to new situations and efficiently match whatever requirements come with them.
Integrated Supply Chain Management Helps to Match Demand at All Times
Integrated supply chain management pulls every aspect of a business into a centralized system. This kind of system makes it easier to access each of the business areas like supply, demand, and logistics. The centralized system creates a kind of visibility (oversight), without which, matching customer demands would be next to impossible.
With fluctuating economies and new markets constantly emerging, the integrated supply chain management allows companies to operate smoothly and efficiently to match the changes in demand.
Integrated Supply Chain Management Increases Efficiency and Reduces Waste Elimination
Integrated supply chain management creates an oversight that allows predictability in business operations like demand and supply. Once companies are able to determine the exact amount of products they need to manufacture, they can increase efficiency by reducing the number of excess products and wastes being produced.
It is a long-term goal of most companies to reduce the amounts of waste that they produce. Reduction of waste production will not only enable them to save more money and storage space, but it will also be beneficial to the environment due to the reduction of greenhouse gases in the atmosphere from longer production hours.