The Advantages of Collaboration

Integrated systems. In today’s business world, collaboration and integration allow an organization to view the whole supply chain. Each partner in the chain fulfills a role and creates visibility for the other members of the chain.

Shared Key Performance Indicators. Business Intelligence (BI) applications share Key Performance Indicators (KPIs) to integrated members of the supply chain. KPIs are normally displayed on a dashboard, and each member updates its own information.

Increased visibility. Big retailers like Wal-Mart also employ Vendor Management Inventory (VMI) systems to increase visibility and reduce stock outs. VMI makes it less likely for companies to run out of stock as it makes use of integrated systems and procedures. In some cases retailers don’t own the stock, and stock is shipped on a consignment type basis.

More Responsive. In a well integrated system, members can track each order and gain insight into delivery times and quality of product delivered. Advanced BI applications can analyze each step of the process and identify potential opportunities. This increased visibility allows the chain to operate at a greater speed, and in the process allow more flexibility.

To view the full article please see Logisticsworkz website.

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