The effects of supply chain integration on supply chain capabilities

However, they believe that truly integrated supply chain management does provide a means to achieve a definitive competitive advantage. The very nature of supply chain management is special. Because of the incredible complexity and scale involved in managing the flow of goods and information between multiple entities in the supply chain, there exists a broad and ever-changing set of priorities that must be managed at any given moment (Scott, R. Westbrook, 1991, p.23-33). Buy essay As supply chain strategies evolve, managers will encounter new and challenging situations every day. Some of these challenging situations are internal and involve getting people to adopt the new way of thinking. Other challenges relate to government regulation and how to comply with a multitude of rules and regulations as goods traverse international borders. Finally, there also exist challenges set forth by customers, whose needs and requirements change rapidly and continue to escalate (Cavinato, 1992, p.285-301). These changes will require a level of responsiveness never before encountered in the business world. The future success will be directly proportional to the ability to recognize changes occurring in the markets and respond positively to them. Supply chain integration is crucial in enhancing supply chain capability and thus the costs. Many managers apply a simple model to supply chain operation costs. The lower the cost, the better the supply chain works. However, even the hard-nosed will admit that it can lead to unsatisfactory results. When focusing only on costs, leads to profitability, market positioning and competitive advantage. Custom essay Effective supply chain management works backwards from customer needs, helping companies add financial and business value. If supply chain management emanates from customer needs and integrates all business functions, there must be a way to measure its success and make key business decisions (Scott, R. Westbrook, 1991, p.23-33). Supply chain integration is related positively to cost efficiency in supply chain and to the agility in the supply chain. Term papers