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5.6 Information and the synchronised supply chain

We repeat again that a winning supply chain is an integrated system. This integration is required because each stage of the supply chain has different business processes and operational economics, and their immediate goals and operational objectives are different. The system approach requires that the supply chain is optimised at the integrated system level where all stages are considered together. What about the conflicting goals and objectives?

Read Section 4.7 (pages 112-116) in your text. This section deals with conflicting objectives within a supply chain and how information integration is allowing firms to deal with these conflicts in a more efficient way. The net result is superior supply chain performance. You will notice that information is allowing firms to reduce uncertainty and match supply and demand and plan in advance. The positive effect is on reduction of lead time in manufacturing, distribution and greater customer service.

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