ABSTRACT

Major ones include the global supply chain, collaboration and integration, internet and e-commerce, sourcing strategies, and quality management. Internal supply chain integration is therefore a process of interaction and collaboration in which manufacturing, purchasing and logistics work together in a cooperative manner to arrive at mutually acceptable outcomes for their organization. An integrated enterprise resource planning system is a key enabler of internal integration, often exposing remaining non-value-added activities in the organization, and allowing for better communication and collaboration through a common database. In summary, internal integration needs more than a system and proper organization. Like internal integration, it also requires shared goals, cooperation, and collaboration to work successfully. Supply chain integration refers to the degree to which the firm can strategically collaborate with their supply chain partners and collaboratively manage the intra- and inter-organization processes to achieve the effective and efficient flows of product and services, information, money and decisions.