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5 Reasons We Are Addicted to Supply Chain Integration

 

In order to be successful, we understand that businesses should be able to integrate themselves with processes and technology across extended enterprises. That’s why collaboration with customers, suppliers and trading partners is important to the efficiency of the supply chain. Businesses rely on efficient supply chains to meet sales, gain profits and provide customer satisfaction.

  1. Partnership Formation. The primary benefit of an integrated supply chain is building partnerships. It increases the trust level among suppliers and customers. It also paves the way to converting former rivals into partners. Thanks to a steady performance and guaranteed sourcing brought by added trust.   
  1. Flexibility. Supply chain integration allows us to quickly adapt to varying circumstances without delaying production or shutting down at one point. It gives us operational flexibility to respond to customer demands and competitors’ actions.
  1. Inventory Management. It also improves inventory management by decreasing inventory requirements and increasing on-time delivery. Studies show that the move improves on-time delivery by 50%, thereby improving customer service. It also prevents overstocking and understocking by allowing companies to adjust inventory orders in advance.
  1. Facilitates Prediction. Integrated supply chains work as warning systems. Involved parties begin to exchange data in real-time, which increases efficiency. It also allows them to plan and execute production schedule, inventory management and shipping with more valuable information.
  1. Profit Margins. With good inventory management and flexibility, companies revel in lower costs that result to increased profit margins. Through supply chain integration, even small businesses remain competitive and continue to grow as they respond to challenges in the industry. Integration allows them to look into their own and their suppliers’ operations, reducing expenses and driving profit margins.

There are a number of reasons why we are hooked to supply chain integration and why you should be too. All these expand from collaboration between suppliers, customers and partners. A tight and efficient supply chain result to higher levels of customer service, sales and profits.

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Charlie Alsmiller

Throughout his career, Charlie Alsmiller has focused on customer problems in difficult industries such as Energy and Telecommunications. Prior to starting Appterra in 2005, Alsmiller was VP of Global Operations for Allegro Development, a leading provider of software for the energy sector. He has also served as president of OmniSpace Technologies, a leading SaaS provider that he founded in 1999. He spent over 10 years in the consulting world with Price Waterhouse and Deloitte Consulting, where he participated in a wide variety of projects for very high profile clients. Mr. Alsmiller holds a BBA from Baylor University in Management and Information Systems and a MBA from the University of Dallas in International Business. Specialties: Technology ventures, Enterprise Software, Contract Negotiation, International Operations, Private Equity, Product Management, Strategic Alliances, Software Implementation, Software Development

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