Achieving Supply Chain Integration: Connecting the Supply Chain Inside and Out for Competitive Advantage

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Features

• Master new best practices for integrating demand, supply, and partners worldwide
• Bridge key “integration gaps” to maximise customer value and profit
• Improve performance in areas ranging from resource availability to returns
• From leading supply chain integration experts at the University of Tennessee’s Haslam College of Business

Description

High-Value Supply Chain Integration

New research, practical priorities, actionable solutions

• Master new best practices for integrating demand, supply, and partners worldwide
• Bridge key “integration gaps” to maximize customer value and profit
• Improve performance in areas ranging from resource availability to returns
• From leading supply chain integration experts at the University of Tennessee’s Haslam College of Business

In volatile, global environments, only well-integrated organizations can deliver superior customer outcomes and sustained profitability. Supply chain practitioners are on the frontlines of integration: they must bring together functions ranging from sales to logistics and a world of third-party suppliers. Integration is not easy, but proven solutions exist. In Achieving Supply Chain Integration, leading experts reveal what works and how to make it work.

The authors and contributors clarify what supply chain integration really means, and why it’s even more crucial than many companies realize. You’ll learn how to manage core conflicts that make integration difficult, so you can maximize value to both customers and your organization.

You’ll find example-based, research-driven insights for both internal and external integration, addressing issues ranging from culture to financial metrics. The authors share practical guidance on everything from building more innovative partner relationships to avoiding raw material shortages.

Whatever your supply chain or operations responsibilities, you need to integrate more effectively, and this guide will help you do it.

Supply chain integration can ensure a smoother, more efficient flow of products, and enable access to third-party resources and capabilities that would be costly or impossible to build internally. However, successful integration has proven challenging, especially as supply chains evolve to encompass even more external partners.

The Department of Marketing and Supply Chain Management at the University of Tennessee’s Haslam College of Business has focused extensively on researching successful integration across demand, supply, and inter-enterprise functions. Now, its pioneering researchers share indispensable new insights on making integration work throughout your supply chain.

Achieving Supply Chain Integration shows how to prioritize which processes and functions to integrate and select integration strategies likely to deliver the greatest performance benefits. Drawing on actual successes and failures, UT’s researchers illuminate best practices and common mistakes. They present proven approaches to integrating sales, marketing, core supply chain functions such as procurement and logistics, and widely diverse partner relationships.

Whether you’re a practitioner or student, this guide will help you approach integration projects with “eyes open”—so you can mitigate risks and maximize value.

• Understanding what integration is and isn’t, and why it matters so much
• Bridging the integration gap to maximize value creation
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  Table of Contents

  Preface    viii

  Chapter 1: Integration: What It Is, What It Isn’t, and Why You Should Care    1

  Integration and Supply Chain Management    4

  What Factors Lead to Integration?    6

  What Are Integration’s Performance Implications?    7

  Solidifying Our Understanding of Integration    8

  Toward Consensus on Cross-Functional Integration    10

  Extending Previous Definitional Work on Integration    15

  Planting the Seeds for Integration    18

  Tools Available to Managers    21

  Conclusion    24

  Endnotes    25

  Chapter 2: Bridging the Integration Gap    27

  The Difficulty in Integrating    30

  Interfunctional Bias    31

  General Methods for Overcoming Conflict Within Integration    32

  Interest-Based Problem Solving and Collaborative Communication    35

  Conclusion    45

  Endnotes    46

  Chapter 3: Maximizing Organizational Value Creation Across the Great Divide    47

  The Demand and Supply Integration Journey    50

  Four Examples of the DSI Journey    53

  Managerial Implications    68

  Conclusions    75

  About the Research    75

  Endnotes    77

  Chapter 4: The Role of Information in Internal and External Integration    79

  The Importance of IT Infrastructure Integration to Supply Chain Effectiveness    80

  The Role of Operating Models in Relation to Integration    82

  Conclusions    85

  Endnotes    88

  Chapter 5: Bending the Chain: Deriving Value from Purchasing-Logistics Integration    89

  The Surprising Challenge: Purchasing and Logistics Integration    93

  Supply and Demand Disconnects    96

  The Research: Linking Purchasing and Logistics Integration (PLi) to Improved Functional and Financial Performance    98

  Best Practices    107

  Seven Actions a Supply Chain Leader Can Take Today    118

  How High Is Your PLi?    120

  Endnotes    122

  Chapter 6: Getting Aligned: The Benefits of Integrating Market, Environmental, Social, and Political Strategies Within the Organization    123

  How Do Executives Engage in Strategic Management?    125

  The Alignment Framework    127

  Applying the Alignment Framework    129

  Integrating Market and Nonmarket Strategies    136

  Conclusion    144

  Endnotes    144

  Chapter 7: Achieving Demand and Supply Integration    147

  The Idea Behind DSI    148

  How DSI Is Different from S&OP    149

  Signals That Demand and Supply Are Not Effectively Integrated    151

  The Ideal Picture of Demand and Supply Integration    152

  DSI Across the Supply Chain    157

  Typical DSI Aberrations    160

  DSI Core Principles    164

  Critical Components of DSI    166

  Characteristics of Successful DSI Implementations    172

  DSI Summary    175

  Endnotes    175

  Chapter 8: Sell Right, Not More: Leveraging Internal Integration to Mitigate Product Returns    177

  A Returns Management Overview: Inspiring Internal Integration    178

  The Challenge of Managing Returns    190

  Thoughts and Observations    200

  Endnotes    201

  Chapter 9: Supplier Integration via Vested Relationships    203

  The Sourcing Continuum    204

  Seven Sourcing Business Models    210

  Supplier Integration via Vested Relationships    226

  Conclusion    234

  Endnotes    235

  Chapter 10: Raw Material Feast or Famine: Integrating Supply Networks to Overcome Resource Scarcity    239

  Supply Risk—It Is There, Whether You Manage It or Not    241

  Understanding the Network of Risks    242

  Managing the Network of Risks: Detection, Mitigation, and Recovery    243

  Integration as an Enabler of Continuity and Resiliency    248

  A Network Approach to Managing Supply Disruptions Through Integration    253

  Natural Resource Scarcity and the Dynamic Global Supply Network    260

  Conclusion    264

  Endnotes    265

  Chapter 11: Integrating Ideas and Environments: Blending Marketing Strategy with Context for Organizational Success    267

  The Study: Integrating Marketing Strategy with a Firm’s Internal and External Conditions    273

  Conclusion    293

  Endnotes    294

  Chapter 12: External Barriers to Integration: Tearing Down the Walls    297

  Conceptualizing Integration    300

  Defining the Types of Barriers    302

  Concluding Thoughts    311

  Endnotes    312

  Index    313

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