What is the meaning of supply chain integration, including what?

The competition of modern enterprises has long been separated from the competition of large-scale production between enterprises, and then turned to the competition pattern between supply chain and supply chain. When we try to use the competitive strategy put forward by Professor Porter to analyze the current situation of enterprises, it is not difficult to find that the development of technology makes homogenization sweeping the world. No matter from cost reduction or focus, we must rely on the management of enterprise supply chain, and efficient supply chain integration can maintain and upgrade the competitiveness of enterprise supply chain. It can be seen how important supply chain integration is to enterprises both at present and in the future. As a modern enterprise want to upgrade the supply chain management, we can start from understanding the concept and content of supply chain integration.

What is the supply chain?
The supply chain is a whole functional network structure that centers on core enterprises, through the control of information flow, logistics and capital flow, starts from purchasing raw materials, makes intermediate products and final products, and finally delivers products to consumers through the sales network, connecting suppliers, manufacturers, distributors, retailers and end users ” It can be seen that the amount of information in the supply chain is indeed a little large.

With the rise of supply chain competition and the impact of digital economy, where will enterprises go?
The great changes brought about by the digital economy set off a wave of subversion in all walks of life. Only highly flexible supply chain can help enterprises to build market competitiveness. Supply chain integration is an inevitable topic. How to build supply chain integration in enterprise supply chain management? Please continue to start with the content of supply chain integration.

What is supply chain integration?
In short, there are three points: functional integration, spatial integration and cross period integration. Keywords that are too conceptual are always confusing. A little dissection is needed:
What is functional integration? It mainly focuses on the integration of functions such as procurement, production, transportation, storage, etc.; then it concentrates these functions in the space between suppliers, facilities and markets in different regions, forming the spatial integration; and it continues to form the hierarchical integration of these activities in the three planning levels of strategy, tactics and operation, forming the planning levels The overlapping supply chain decision-making must be consistent, and the supply chain of products should be optimized in the whole life cycle. It’s a little complicated, isn’t it? Let’s find some cases to illustrate.

In the era of digital economy, taking SAP as an example, how to build supply chain integration?
SAP puts forward the concept of digital supply chain, and builds a digital intelligent supply chain through the integration of people, materials and flows to meet the higher demand of supply chain integration. How do they achieve supply chain integration? The answer is to restructure the supply chain.

Three pronged strategy to build SAP Digital Supply Chain
In the field of manufacturing with fierce competition, in order to succeed, enterprises need to adopt new methods to manage the supply chain, and implement the three pronged strategy to redefine the supply chain. Make use of excellent product experience, deliver excellent customer experience, and build a sustainable supply chain with a targeted goal.

SAP helps enterprises create a “digital image” of the end-to-end supply chain, with the help of comprehensive operation visibility and customer information, through the visualization of functions and spaces, to build a comprehensive and interconnected supply chain, and realize the digital transformation of the entire enterprise. At the same time, SAP system also further covers the entire product life cycle, not only integrates with supply chain and demand management, but also provides enterprises with the required innovation speed, operation efficiency and service efficiency to help them meet customer expectations.

Is supply chain integration interesting? It does have a lot of meaning. The key is how to restructure the supply chain to promote innovation and establish deeper ties with customers, so as to win in the present. For a more comprehensive understanding, consult your acloudear–SAP partner.

This article "What is the meaning of supply chain integration, including what?" by AcloudEAR. We focus on business applications such as cloud ERP.

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