Integrated supply chain management

a comprehensive approach to managing the movement of goods and materials

throughout the supply chain. It covers all aspects of the supply chain, from raw
materials procurement to manufacturing to distribution and delivery. It is a holistic
approach to managing the flow of goods and services from suppliers to customers.

Components of Integrated Supply Chain Management

Customer Analysis- focuses on understanding customer needs and behaviors. It help to

improve customer satisfaction and loyalty, which in turn can lead to increased sales and
revenue.
Purchasing/Supplier Partnering- involves collaboration with suppliers for mutual benefit.
It can help a company get more value for its money. It also helps mitigate risk as it
ensures continuity of supply from reliable sources even during disruptions in the market.
Inventory Management & Control- about maintaining optimal stock levels and ensuring
that the supply chain is efficient. It helps companies identify which and how much stock
to order at what time.
Demand & Lead Time Management - deals with predicting demand and managing lead
times. Businesses can ensure that they receive the products they need exactly when
they need them and can help reduce costs.
Materials Management- oversees the handling, storage, and inventory of materials. a
core function of supply chain management. It also involves assessing material quality to
make sure it meets customer demands.
Manufacturing Re-Manufacturing Assembly- focuses on production processes.
Businesses can reduce unnecessary expenses and processes in the supply chain and
deliver products to the consumer faster.
Storage & Transportation- manages the storage and movement of goods.
Transportation procedures guarantee that items are delivered efficiently. On the other
hand, storage minimizes stockouts and lowers levels of excess inventory.
Order Fulfillment- is the process of receiving and processing customer orders. It
ensures that customers' orders are processed and delivered efficiently.
Order Fulfillment 5 process:
1. Receiving and storing inventory- As soon as the inventory arrives at a warehouse or
fulfilment center, each item undergoes quality checks to ensure it meets standards.
2. Order processing - This step starts as soon as a customer places an order. It involves
setting up the order, confirming product availability, and confirming order details.
3. Order picking and packing- Tracking the exact whereabouts of the ordered items
inside the warehouse is the first step in this phase. Once products are picked, they are
carefully packed, taking fragility, weight, and size into consideration.
4.Shipping
After packing, it’s time to ship orders. This step involves deciding on the most suitable
shipping option depending on delivery deadlines, cost, and destination. Tracking
systems enable for close monitoring of the shipping process, giving customers and the
business access to current and transparent information.
5. Delivery
The fulfilment process is completed when the customer receives the product or delivery
step. It requires coordination with reliable shipping partners to ensure packages arrive
safely and on time.
6. Returns processing
returns are inspected for damage and restocked if needed, and the management
system updates inventory levels accordingly. Refunds and exchanges must be handled
quickly to keep customers' trust.
ISCM involves four key elements:
1. Integrated planning is a process of planning for all aspects of the supply chain as a
whole, rather than as an individual.
2. Integrated execution is a process of managing the execution of all supply chain
activities in a coordinated manner. This involves handling purchases, warehouses,
transportation, and other related tasks.
3. Integrated control refers to the exchange of data and information across all parties
involved in the supply chain.
4. Integrated measurement is the process of monitoring performance throughout the
whole supply chain and utilizing the data to make continuous operational improvements.