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
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Supply chains can be complex dragons that fail to adapt and change when the market changes or unforeseen circumstances rear their ugly head. Static systems are fixed and have a hard time adjusting without great cost or difficulty. Research by Dr. Dimitry Ivanov helps highlight the interconnected nature of supply chains and adaptive adjustments within networks that are interlinked to the supply chain strategy, design, planning, and operations (2009). A fundamental adjustment in the feedback information and structure of the chains is needed. Each of the components of a supply chain functions together to create an efficient system that delivers products and services to customers. Using technology and modern theory in supply chain management helps to ensure the network is updated, adjustable, and running at maximum efficiency. Each of these components is aligned with management’s goals and the appropriate measurements that ensure goal attainment (Kreipl & Pinedo, 2004).