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Internal Strategic Integration

Organisations need to develop shared databases, as well as mechanisms for continuous improvement. Hardest of all is changing the culture to support integration (Kotler, 2006)

Information about Internal Strategic Integration

Successful supply chain management relies on organisations working together and collaborating effectively (Carr and Pearson, 1999; Fynes et al., 2005; Lazzarini et al., 2001). This means that functions internal to the organisation (e.g. purchasing, engineering, manufacturing, marketing, logistics, accounting), as well as those external to it (e.g. end customers, third-party logistics firms, retailers, distributors, warehouses, transportation providers, suppliers, agents, financial institutions) should integrate to achieve the desired outcomes (Monczka et al., 2009).

Internal strategic integration relies to a great extent on information technologies that link together P&SM; functions and activities, such as e-sourcing, e-procurement, e-tender, purchase order systems, marketplaces and business exchanges, contract registers/databases, supplier databases, business intelligence, e-invoicing, electronic point of sale (EPOS) and radio frequency identification technology (RFID) (CIPS: Summary of technology in purchasing). 

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