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Explain the factors to be considered in designing integrated supply chain management. Integrated Supply Chain Management:

The broadest visions of integrated supply chain management are usually expressed in terms of meeting the final customer’s product needs. At its core, ISCM involves coordinating the flow of physical goods from material sourcing, through manufacturing, to the points of consumption. As depicted in Exhibit 1, this entails the efficient management of information and funds flows associated with goods as they move along their overall value chain.
At one level, ISCM is concerned with strategic issues such as the integration of internal and external business processes, the development of close linkages between channel partners, and the management of products and information as they move across organizational and enterprise boundaries.
On another level, ISCM can also be a tactical tool applied to the management of ongoing operational activities. These activities may include customer service, control of inbound and outbound flows of materials and information, and elimination of channel inefficiencies, costs, and redundancies extending from raw materials acquisition through manufacturing, distribution, consumption, and final return through the channel by way of recycling or disposal. To a great extent, there is still a high degree of variability of personal opinion about what, exactly, ISCM means. These differing opinions often carry through to the extent that key people in the same organization are not talking about the same things when they discuss the concept of ISCM. Yet, to be competitive and to better serve the customer, companies know that they must improve their supply chain operations.

With an eye toward finding a common language, or at least some common ground, an array of manufacturers, software developers, and transportation companies collaborated to create the Supply Chain Operations Reference model (SCOR) illustrated in Exhibit 2.2 The SCOR model attempts to develop an objective framework for looking at an organization’s entire procurement and distribution network from the supplier’s supplier to the customer’s customer.

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