Methodology to Support Supply Chain Integration a Business Process Perspective

Background

The supply chain has grown in importance as a source of competitive advantage among companies across different sectors. Companies have been facing a new competitive environment due to changes brought by the globalization of markets, characterized by an increase in the number of competitors, shorter product life cycles and changing customer demand. Therefore, many companies are aiming to achieve competitiveness by improving their supply chains. Accordingly, integration of the supply chain has gained importance as a key issue in supply chain management (SCM). When integration is achieved, the supply chain operates as a single entity driven directly by customer demand. The more integration across the supply chain, the easier to balance supply and demand. Additionally, integration allows synchronization among supply chain partners and well-coordinated flows of materials. SCI is also attractive because it allows reduction of the bullwhip effect and brings a number of operational benefits such as reduction of supply chain costs, lead time and risks.