ABSTRACT
Cooper et al. (1997) identify four possible means of better management of the integration of a supply chain: dyadic, channel integrator, analytic optimization, and keiretsu or vertical integration. A dyadic approach concentrates on one level up or one level down in the chain and is often a starting place for developing an integrated supply chain. Examples are Honda of America Manufacturing and the Xerox Corporation, both of which form close working relationships with their immediate channel partners and encourage these players to do the same. The other three means of better management go further up or down the supply chain. The channel integrator
approach is where one party, a channel leader, plays the key role in setting the overall strategy for the channel and in getting channel members involved in and committed to the channel strategy. An example quoted by Cooper et al. is Chrysler. In the analytic optimization approach, an organization, the channel leader, uses computerized modeling to determine the best supply chain configuration for its operations. The example quoted here is Hewlett-Packard. The keiretsu/vertical integration approach has a clear, centralized channel leader. Mitsubishi and Toyota are quoted examples of the keiretsu approach. The method of management differs, depending on the relative strength of the supply chain members and use of technology, such as computerized models for optimization of the supply system (e.g., optimal inventory management).
