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Horizontal integration refers to the strategy of a company acquiring or merging with other companies at the same level of the supply chain, often to increase market share or reduce competition. In supply chain management, this integration can lead to greater efficiency and cost savings by consolidating resources, streamlining operations, and enhancing coordination among similar businesses. It allows firms to leverage economies of scale, improve bargaining power with suppliers, and expand their distribution networks, ultimately benefiting overall supply chain performance.
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What are the three important concepts relevant to the logistics management by an organisation Explain them briefly and state which one you regard as the best approach and why?
Three important concepts in logistics management are supply chain integration, inventory management, and transportation management. Supply chain integration focuses on coordinating and optimizing all components of the supply chain to enhance efficiency and responsiveness. Inventory management involves maintaining optimal stock levels to meet demand while minimizing costs. Transportation management ensures the efficient movement of goods, balancing speed and cost. Among these, supply chain integration is the best approach, as it fosters collaboration among all stakeholders, leading to greater overall efficiency and responsiveness to market changes.
Four key enterprise applications for organization-wide process integration?
1. Enterprise System2. Supply Chain Management System3. Customer Relationship Management System4. Knowledge Management Systems
Diffenrences between supply management and supply chain management?
Supply management are the methods of modern corporate or institutional buying. Supply chain management is the management of the flow of goods, including raw materials, inventory and finished goods.
Is logistic a part of supply chain management or supply chain is the part of logistic?
logistics is a part of supply Chain Management
Which of the following bullets is not true about the origins of purchasing and supply management?
For supply management to have a strategic focus, supply professionals must have an understanding.
What is a horizontal integration?
Horizontal integration is the merging or takeover of a company that is in the same market and at the same stage of the supply chain.
Differences and similarities between horizontal and vertical integration?
horizontal integration is partnering with other firms in the same or similar industries. vertical integration is partnering with companies that provide some service in the supply chain, ex. suppliers or vendors, of your industry.
Is vertical integration recommended to secure supply chain management?
"Yes , vertical integration is recommended to secure supply cahin management. It keeps the product flowing smoothly , therefore the business can meet its demand from the customers."
What is vertical and horizontal integration.?
Horizontal Integration : When a company decides to expand horizontally i.e within its current line of business then it is called horizontal integration. For eg. pepsi when it got into snacks it can be called a horizontal integration.Vertical integration: When a firm covers all activity of supply chain then it can be called as vertically integrated. Eg. if a paper manufacturing industry goes into plantation of woods and other activities involved with production raw material (wood) it can be called a vertical integration.
What is vertical and horizontal integration?
Horizontal Integration : When a company decides to expand horizontally i.e within its current line of business then it is called horizontal integration. For eg. pepsi when it got into snacks it can be called a horizontal integration.Vertical integration: When a firm covers all activity of supply chain then it can be called as vertically integrated. Eg. if a paper manufacturing industry goes into plantation of woods and other activities involved with production raw material (wood) it can be called a vertical integration.
What is horizontal and vertical integration?
Horizontal Integration : When a company decides to expand horizontally i.e within its current line of business then it is called horizontal integration. For eg. pepsi when it got into snacks it can be called a horizontal integration.Vertical integration: When a firm covers all activity of supply chain then it can be called as vertically integrated. Eg. if a paper manufacturing industry goes into plantation of woods and other activities involved with production raw material (wood) it can be called a vertical integration.
What is horizontal and vertical integration in supply chain?
Horizontal integration in supply chain refers to the process of a company acquiring or merging with other firms at the same stage of production or distribution, often to increase market share or reduce competition. Vertical integration, on the other hand, involves a company taking control of multiple stages of the supply chain, either by acquiring suppliers (backward integration) or distributors (forward integration), to enhance efficiency and reduce dependency on external parties. Both strategies aim to strengthen a company's position in the market and improve overall operational efficiency.
What are some advantages and disadvantages of horizontal integration?
Horizontal integration is when a business such as a bakery buys another bakery to increase their capacity (the number of loaves of bread they can supply to customers) Advantages of horizontal integration Quick way for a business to expand without having to start a new factory from scratch Can lead to economies of scale Disadvantage of horizontal integration The business can get too big too quickly causing problems with management of resources This can lead to problems with communication and co-ordination as the newly bough business tries to fall in line with the existing company May have too many staff - may have doubles of staff e.g. sales managers so may lead to redundancy May have sold machinery that needs replacing Staff may not adapt well to the change of management
How does supply chain and logistics management relate to marketing strategy?
Yeah, so supply chain and logistics management simply relate marketing strategy. It's always been that way and always will in all likelihood remain be that way, too
Where can someone find information about supply chain integration?
One can find information about supply chain integration in industry publications, academic research papers, conferences, and business websites. Additionally, online platforms like LinkedIn and professional organizations related to supply chain management often share articles and resources on this topic. Consulting firms and supply chain management software providers also offer insights and best practices on supply chain integration.
How purchasing relate with supply management?
Purchasing is a subset of supply management that involves the transactional aspect of acquiring goods and services. Supply management, on the other hand, encompasses a broader perspective that includes sourcing, supplier relationship management, inventory control, and overall strategic management of the supply chain. Effective supply management ensures that purchasing activities align with broader organizational goals and objectives.
Is a joint venture part of horizontal integration?
No, a joint venture is not necessarily part of horizontal integration. Horizontal integration occurs when a company acquires or merges with competitors in the same industry to increase market share and reduce competition. A joint venture, on the other hand, involves two or more companies collaborating on a specific project or business activity while remaining independent, which can occur across different stages of the supply chain or in different markets.
