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Chapter 8Integrating the supply chain Content Integration in the supply chain Key issue What is Supply Chain Integration the degree to which the firm can strategically collaborate with their supply chain partners and collaboratively manage the intra- and inter-organization processes to achieve the effective and efficient flows of Product and services Information Money Decisions With the objective of providing the maximum value to the customer at low cost and high speed Measures of integration Access to planning system Sharing production plans Joint EDI access / networks Knowledge of inventory mix / levels Packaging customization Delivery frequencies Common logistical equipment / containers Common use of third-party logistics Internal integration: function to function Inter-company collaboration: a manual approach Integration in the supply chain Electronic collaboration Integration in the supply chain Content Efficient consumer response Key issue Efficient consumer response Category management Continuous replenishment Efficient consumer response Enabling technologies Scanning data Data warehousing Data mining The data include Demand / consumption / sales information Cash flow Stocks of finished goods / work in progress Delivery and output status Efficient consumer response Content Collaborative planning, forecasting and replenishment Key issue Collaborative planning, forecasting and replenishment CPFR Model Develop front-end agreement Create joint business plans Create individual sales forecasts Identify exceptions to sales forecasts Resolve / collaborate on exception items Create order forecast Identify exceptions to order forecast Resolve / collaborate on exception items Generate orders Wal-Mart’s CPFR Program CPFR has “blurred the lines between supplier and customer” Suppliers buy into their program because they have to to work with Wal-Mart, but more importantly, because Wal-Mart’s Systems provide increased profits for Wal-Mart and their suppliers Wal-Ma
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