Understanding the Benefits of Integrated SupplyUnderstanding the Benefits of Integrated SupplyUnderstanding the Benefits of Integrated Supplythe Benefits of Integrated Supply

14916wpIn the world of business, there is a need for control. This is true of all businesses irrespective of their size. An integrated supply chain is somewhat necessary to all businesses. This is to ensure that they have greater elements of control over their procurement processes. After all, no one wants to be spending money unnecessarily. This is especially the case in today’s tough economic climate.

Typically, an integrated supply chain is introduced within manufacturing, retail and warehousing industries. But, it seems that more and more businesses are keen to adopt this approach in a bid to save money. What is more, it can have a positive impact of the control elements of the internal procurement processes.



Supply chains are important to businesses. Supply chains provide customer service, sales and target resolution. Without a supply chain, businesses are doomed to failure.

So, to get this process right, there is a need for integrated supply chain approaches. What are the benefits of this for business?

Let’s find out.

Time to Change: Flexibility

Supply chain integration allows management controls to be more flexible. This is needed in rapidly changing businesses. This means that the actions of clients and shareholders can be met with ease. Intelligence can be sought from using supply chains. It is important to have a process that is flexible and can be changed quickly and efficiently.

It’s all about the Money: Profit Margins

Integrated supply chains allow for tight controls within the business world. This means that there is a reduction in waste, resulting in a lower cost structure. For many, this can see a lofty return on investment. By having a supply chain process in place, the business can be changed more efficiently.

This in turn allows businesses to compete more rigidly in the marketplace. The profit that can be sought from this kind of operation is monumental. A deeper insight is needed for supply chains. By having integrated supply,  companies have clearer visibility of their competitors operations.

This results in a cost reduction process being implemented. This can have a positive impact on profit margins all round.

Elimination of Human Error

By deploying this kind of integrated supply system, human error is significantly reduced. This can have a positive impact on businesses. As the system is primarily operated via an automated process, an element of error is reduced. This means that orders, invoices and procurement processes are run smoother. What is more, it is a faster way of processing orders within an organisation.

What about the Considerations?

For some newer companies, they are less than eager to adopt this kind of system. This is because it can cause minor disruptions to the procurement process. This can result in a loss of profit for a small time. For this reason, there can be reluctance in using it. For larger companies and SMEs they are keen to have a competitive edge over their direct competition. It can prove to be a tremendous benefit to all businesses as it reduces procurement costs and maximises profits.


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