Benefits of integrated supply chain

 Supply Chain Management (SCM) is a structured transport and logistics management system in a manufacturing, wholesale, or retail sector. SCM is mainly aimed at maximizing productivity in supply chain delivery activities. Historically, each member of the supply chain took a focused view of their role in bringing products to the next level. With an integrated supply chain model, all chain members collaborate with the end goal of delivering the best value to consumers.

Let’s take a look at some of the most important advantages to having an integrated supply chain: 

1. Eye to Eye visibility: It is crucial to connect as many areas as possible in an integrated supply chain so as to allow effective collaboration with the ultimate goal of cost reduction, waste, production time and response time. Instead of enabling various business departments to work independently, an integrated supply chain encourages centralization to ensure consistency across the business.

2. Added flexibility: One of the most important benefits of an integrated supply chain is increased flexibility. In addition, according to Supply Chain Brain, supply chains with a flexible approach have found the "best way to manage cash flow without missing out on opportunities to grow the business.

3. Reduced waste: It isn't easy to manage a sustainable supply chain. Professor of supply chain management and consultant to Inbound Logistics Paul A. Myerson noted that lean methods help to identify and reduce duplication in the supply chain, and improved resilience enables companies to respond effectively to unpredictability. He has found that the often best solution is a blend of agile and lean supply chain methods. The best way to ensure the supply chain is reliable and efficient in the long run is to incorporate data from around operations.

4. Improved margins: When the supply chain is a well-oiled machine, it’s easier for companies to maintain and even increase their revenue, resulting in higher profit margins. Effectively managing an innovative, collaborative supply chain – through the use of  cloud-based SCM, Logistics, EPM and PLM solutions – can help businesses produce and deliver products at a much faster, more successful rate, and thus attain that higher profit margin.