The advantages of supply chain design integration with respect to investment and space. Concept Introduction: The supply chain of a company, especially that of a diversified company consists of a large number of suppliers, each supplying one or more than one item (product and/or service). For its performance, the company depends heavily on this chain which needs to be effective and efficient in totality. Even one single weak link in the entire chain can jeopardize the company’s performance. To avoid/eliminate such cases, it is essential to integrate the supply chain with the company’s operations during the design of the chain itself. This is the only way of economizing on costs (including those of finance and space) without sacrificing performance. The integration will involve all the suppliers, the company’s operations and in some cases (of course with the consent of the supplier) the supplier’s supplier.

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Chapter 14, Problem 3C

Summary Introduction

Interpretation: The advantages of supply chain design integration with respect to investment and space.

Concept Introduction: The supply chain of a company, especially that of a diversified company consists of a large number of suppliers, each supplying one or more than one item (product and/or service). For its performance, the company depends heavily on this chain which needs to be effective and efficient in totality. Even one single weak link in the entire chain can jeopardize the company’s performance. To avoid/eliminate such cases, it is essential to integrate the supply chain with the company’s operations during the design of the chain itself. This is the only way of economizing on costs (including those of finance and space) without sacrificing performance. The integration will involve all the suppliers, the company’s operations and in some cases (of course with the consent of the supplier) the supplier’s supplier.

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