Barriers to Supply Chain Integration

Topics: Supply chain management, Supply chain, Management Pages: 2 (717 words) Published: September 7, 2011

26th July 20111

The key objectives of a supply chain are to provide quality products & services, speed with which goods and services move through the chain, dependability, flexibility and cost. (Slack, Chambers, & Johnston, 2007) One of the key facilitators to achieving these objectives is Supply Chain Integration. Today, Supply Chain Management as a discipline has changed the way logistics and supply is viewed. The competitive nature of business has neccesitated the modelling of Management Information Systems that can be used to provide information that will help fulfill customer demand while at the same time ensuring costs are kept to a minimum. “To stay competitive, enlightened companies have strived to achieve greater coordination and collaboration among supply chain partners in an approach called “supply chain integration.” (Lee & Whang, 2001) Supply chain Integration therefore speaks to the breaking down of functional andorganisational barriers, and the use of integrated information systems that are part of the whole supply chain.

“Supply-chain integration builds strong partnerships - Manufacturers can reduce time to market, decrease costs, and manage inventory turns through supply-chain integration. Companies like (Supply Chain Integration)

Companies such as SAP, Red Prairie, Manhattan Associates, i2 and HighJump have made use of technology to facilitate supply chain partner collaboration. Internet connectivity has also played a key role in ensuring that different componets of the supply chain are integrated.

Barriers to Supply Chain Integration in Kenya
Barriers to Supply Chain Integration in Kenya, include;

1.High Set up costs – IT plays an important role in the integration. The cost of putting together these platforms that integrate the supply chain are very prohibitive. 2.Organizational Set up – A number of companies are set up traditionally where there isn’t much cross functional synergizing...
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