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Wider Supply Chain Integration Leads to Performance Advantages

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Supply chain management and integration has important functions for businesses that desire to create higher levels of financial performance. Since all companies work with related companies in either formal or informal linkages, such as suppliers and distributors, it is important to ensure information is transferred effectively between entities to enhance operations on both sides. Research by Kannan & Keah (2010) show how companies that integrate their supply chains to a wider extent develop a number of advantages.  Supply chain management entails businesses associated with the development, building, distributing, and returning of products/services. It has been defined as the “ cross functional integration within the firm and across the network of firms that comprise the supply chain ” (Lambert, 2004). The management of supply chain has come to mean better integration with the supply chain elements to produce value.  Integration is the creation of inter-firm linkages