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Chapter 11 • Supply Chain Management 319

TABLE 11-2 Supply Chain Integration Dimensions
Dimension Elements Benefits
Information • Information sharing and transparency • Reduced bullwhip effect
Integration • Direct and real-time accessibility • Early problem detection
• Faster response
• Trust building
Synchronized • Collaborative planning, forecasting, • Reduced bullwhip effect
Planning and replenishment • Lower cost
• Joint design • Optimized capacity
utilization
• Improved service
Workflow • Coordinated production planning and • Efficiency and accuracy
Coordination operations, procurement, order processing, gains
engineering change, and design • Fast response
• Integrated, automated business processes • Improved service
• Earlier time to market
• Expanded network
New Business • Virtual resources • Better asset utilization
Models • Logistics restructuring • Higher efficiency
• Mass customization • Penetrate new markets
• New services • Create new products
• Click-and-mortar models

Information integration refers to the sharing of information among members of the supply
chain. This includes any type of data that could influence the actions and performance of other
members of the supply chain (e.g., demand data, inventory status, capacity plans, production
schedules, promotion plans, and shipment schedules). Such information ideally can be accessible
by the appropriate parties on a real-time, online basis without significant effort.
Planning synchronization refers to the joint design and execution of plans for product
introduction, forecasting, and replenishment. In essence, planning synchronization defines what
is to be done with the information that is shared; it is the mutual agreement among members as
to specific actions based on that information. Hence, members in a supply chain may have
their order fulfillment plans coordinated so that all replenishments are made to meet the same
objective—the ultimate customer demands.
Workflow coordination refers to streamlined and automated workflow activities between
supply chain partners. Here, integration means “what” we would do with shared information, as
well as “how.” For example, procurement activities from a manufacturer to a supplier can be
tightly coupled so that efficiencies in terms of accuracy, time, and cost can be achieved. Product
development activities involving multiple companies can also be integrated to achieve similar
efficiencies. In the best-case situation, supply chain partners would rely on technology solutions
actually to automate many or all of the internal and cross-company workflow steps.