Question

List the 5 Characteristics of an Integrated Supply Base Strategy.

Answer 1

Supply chain management / Integrated Supply Base Strategy:

An integrated supply chain can be defined as an association of customers and suppliers who, using management techniques, work together to optimize their collective performance in the creation, distribution, and support of an end product. It may be helpful to think of the participants as the divisions of a large, vertically integrated corporation, although the independent companies in the chain are bound together only by trust, shared objectives, and contracts entered into on a voluntary basis.

Characteristics of an Integrated Supply Base Strategy:

1. Strong leadership: To succeed, your supply chain must have top-notch leaders in place to oversee the processes involved and maintain a sense of perspective on the company’s larger goals. While this might seem implicit in the structure of any successful supply chain, you’d be surprised how many businesses fail to install the right individuals in key positions who can ensure that experienced team members translate into a high-functioning supply chain.

2, A focus on customization: Customers nowadays expect a personalized experience when it comes to the products and services they choose to spend their hard-earned money on. To a certain extent, this supply chain strategy extends to the need for flexible business processes.

3. A sound design: Strategy wouldn’t exist without structure, but studies show that a disappointing 22 percent of companies put enough forethought into how their supply chain is designed. In most cases, companies should devote an entire team to maintaining effective cross-functionality throughout the various aspects of business.

4. Widespread flexibility: Thanks to modern advances, consumers’ relationship to products and services is more fluid than it’s ever been. Accordingly, your business needs to be able to adjust to the needs of your customers.

5. Horizontal processes: Ask any company with a proven track record, and they’ll readily admit the integral role that horizontal processes play in how well their business functions within their industry. These include the cross-analysis of revenue management and the cost to serve, supplier development, sales and operations planning, and corporate social responsibility. Keeping a broad view on such aspects of running your business enables you to ensure that they remain in support of your larger corporate goals.