Potential threats like power outages storms

devoted to becoming a better customer. Potential threats like power outages, storms, disruption in
communications, equipment breakdowns, and terrorism are not easily predicted thus are costly to
prepare most of the time. Good communications and resource sharing are helpful in responding
to disruptions, but those involved in the supply chain must be extra careful to high levels of risk
in their quest for integration.
Integration Process
The integrating of a supply chain is usually an incremental process that gives priority to the
investments with the highest potential returns. The supply chains of different units of a business
are different priorities and approaches based on strategies, needs, and potential returns. Many
companies use an approach that begins and is developed internally, and it gradually works
outwards through the supply chain. The first step is usually to make in-house improvements like
reductions in inventory which will reduce working capital, transportation costs, and warehousing
(Faden, C. 2014). With this move in place, the integration effort will start to progress outward.

SUPPLY CHAIN INTEGRATION 9
The process of integration begins with supplier selection and development, approaches to
integration, and then management tools that are available to support these efforts. Finally, the
factors that are critical to success are identified, and the metrics for evaluating performance and
progress are suggested.
Supplier Selection and Development Process
This process is a strategic initiative that is undertaken as part of the overall competitive strategy
of a company. When a corporation uses outside suppliers, they will have to do a search for
competitive providers based on the capability needs. The providers should be carefully selected
because they will have a long-term and intimate business relationship.
Integration by Function
Many companies prefer the use of a function by function method to integrate the supply chain
focusing on features that offer the highest returns. The most frequently combined features are
inventories, procurement, manufacturing operations, inbound logistics, and the distribution of
product & services. A successfully integrated supply chain must be open to function shift ability.
Integration by Process
Performance is improved when the supply chain is a set of integrated process capabilities rather
than separate corporations and functions. Integration will be most successful across multiple
processes.
Barriers to Integration

SUPPLY CHAIN INTEGRATION
10
Many obstacles can impede the integration process. Optimization of one part of the supply can
lead to the entire system being sabotaged. For better results to be attained the system should be
optimized as a whole. Barriers to integration include:
 Poor communications
 Lack of mutually acceptable goals
 Inappropriate metrics for evaluating performance
 Clashing of corporate cultures
 Incompatibility of capabilities in electronic design technologies
 Lack of commitment in the nurturing of relationships
