Disadvantages Of Supply Chain Integration

gration? Give examples.

Lee, H, and whang, S. defined integration as, “The quality of the state of collaboration that exists among departments that are required to achieve unity of effort by the demands of the environment.” In the context of supply chain, purchasing is one of the department that associates with the concept of supply chain integration.
Monczka et al. (2008) defines integration as “the process of incorporating or bringing together different groups, functions, or organizations, either formally or informally, physically or by information technology, to work jointly and often concurrently on a common business-related assignment or purpose”. With this definition purchasing holds the role of incorporate or connector which brings

(2001), into five categories: Unacceptable suppliers, Acceptable suppliers, Good suppliers, preferred suppliers, and Exceptional suppliers a company can have problems with connecting categories with supplier relationship. With this sort of classification if all the bidding process goes through procurement in direct competition the co-operation and partnership of different categories differ from short term to long term. In this example also purchasing (procurement) plays a role of integrating different

Easy access to information – This system provides all the relevant information in terms of availability, and customized price through a single interface which in a way integrates all the other players of supply chain like supplier, buyer, finance department and so on.
It also helps in the processes like contract negotiation, governance, and compliance thus integrating all together through this process.
It shortens the purchase cycle thus helps the supply chain in working together to achieve the common goal of efficiency, accuracy and higher returns.

With above mentioned roles of e-procurement in supply chain , e-procurement essentially connects all the processes and activities both internally and externally to bring supply chain as a one integrated strength for the company to get competitive advantage over others.
As mentioned on the figure 3. below, e- procurement includes requisition , approval, purchase order, receipts of invoice, reconciliation, payment, tax reclamation and analysis . In this cycle e-procurement process has engagement with purchasing, accounting, finance and strategy departments which in a way heads towards the integration of all the departments and also different functions within supply