Article | REF: AG5240 V1

Implementing the integration of supply chains successfully

Author: Nathalie FABBE-COSTES

Publication date: April 10, 2010

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ABSTRACT

The supply chain has become a strategic tool. Its integration into the processes of the company has become necessary in order to optimize the performances and profitability of organizations. However, due to the risks linked to this integration, it is necessary to follow proven methods and key steps in order to pilot such changes. In addition to the traditional technical questions related to the integration of processes, systems (notably information systems) and technologies, this article deals with the organizational and human dimensions which are of equal importance.

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 INTRODUCTION

Integration is probably one of the most frequently used words in the logistics vocabulary, and the integration of supply chains appears to be an "ideal" towards which many initiatives are striving.

Indeed, it's taken for granted that integrating a supply chain helps to improve its performance, and consequently the performance of the companies involved. But, despite our best efforts, the results in this area appear to be partial and unsatisfactory. Should we be surprised?

What does it mean to "integrate" a supply chain? What is "good integration"? How do you go about "successfully" integrating a supply chain? These are the questions asked by many managers in charge of designing, piloting, executing, controlling or auditing supply chains.

This article, which is divided into four chapters, aims to take stock of these issues, with a view to providing managers with a tool for reflection and action. We will focus both on the meaning of the term "integration" as applied to supply chains, and on the approach to integrating supply chains.

Drawing on the most recent international research on the subject, our article will focus on principles rather than techniques, addressing the main issues that arise during such projects and considering the associated risks. Each of the points discussed will be accompanied by the production of synthetic "reading grid"-type tools, as well as practical illustrations.

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Successfully integrating supply chains