The Integration of Supply Chains Can Be Supported through the Use of Modern Data - Coursework Example

The Integration of Supply Chains can be supported through the Use of Modern Data Analytic ___________________________________________________________________________ Abstract: The assignment explores the role of integration within supply chain processes and analyses its importance for an organisation to stimulate performance of the supply chains in increasing business efficiency. In order to determine the roles and importance, the discussion of the assignment also tends to identify and assess the significant role of supply chain data analysis approaches. In this regard, four types of major supply chain data analysis approaches have been described to determine their supports for improving operational efficiency of the supply chain activities. Keywords: Supply chain integration, Role of data in supply chain integration, supply chain data analysis approaches, Decision Support System (DSS), Business Intelligence, Enterprise Resource Planning (ERP) & Supply Chain Risk Management (SCRM) Table of Contents 1. Introduction 3 2. Role of Integration within Supply Chains 4 2.1 Building Collaboration between Suppliers and Buyers 4 2.2 Alignment of Objectives 5 2.3 Linkage of Information with Supply Chain Activities 5 2.4 Clarity of Individual Roles and Responsibilities 6 2.5 Visibility of Information 6 2.6 Trust and Collaboration 6 3. Role of Data in Supply Chains and Analysing its Sharing of Large Volumes of Data 7 3.1 Data Warehousing 7 3.2 Use of Big Data Architecture 9 3.2.1 Identification of Supply Chain Goals 9 3.2.2 Make Operational Insights of the Big Data 9 3.2.3 Building Big Data Pipeline 10 3.3 Implementation of Uniform Data Models 10 4. Discussing Data Analysis Approaches in Supply Chain Integration 11 4.1 Decision Support System (DSS) 12 4.2 Business Intelligence (BI) 12 4.3 Enterprise Resource Planning (ERP) 14 4.4 Supply Chain Risk Management (SCRM) Approach 15 5. Conclusion 17 References 18 1. Introduction The integration of supply chain has long been witnessed to perform a seamless role to rejuvenate small pieces of operation into a single and relatively strong mechanism. In relation to the emergence of globalisation and continuous advancements of technological aspects, the role of integration in the Supply Chain Management (SCM) process is one of the competitive strategic measures of the marketers operating within the global business environment (Fredendall & Hill, 2000). Moreover, rapid development in global outsourcing and information technology has been providing major support to the marketers by enabling them to perform as well as manage international supply networks across different geographical locations successfully. The integration of the supply chain process is often recognised to be highly influenced by the emerging technological advancements, which enable the global marketers to transform their business operations and gain adequate control over supply and delivery functions (Ross, 2010; Poirier, 1999). The practice of integration of the supply chain process ensures organisations to strengthen their decision making competencies and meet their desired commercial goals in an effective manner. The integration of supply chain is effective in different spheres that include tacking performances, assessment of risks identify opportunities and diagnose bottleneck (SAP, 2009). Emphasizing the contribution of supply chain in business, the assignment critically analyses the role of integration of the supply chain process and its importance in enabling organisations to achieve their business objectives efficiently. By considering the importance of information and technology, the discussion in the assignment explores the critical role of data within the supply chain processes and describing its relevancy for sharing a large volume of data. In addition, the assignment also discusses the data analysis process in the supply chain using valuable up-to-date data analysis models and accordingly, evaluates their roles and importance in improving competitiveness of supply chain within an organisation. 2. Role of Integration within Supply Chains A successful integration in SCM often involves bringing changes from the overseeing individual roles and functions to integrating operations into a single and more operative supply chain process (Carter & et. al., 2009). The primary role of integration in an effective supply chain process is to share information amidst the existing supply chain partners of organisations including procurement, marketing, operation and product/service delivery departments and ensure to improve their performance towards achieving the desired organisational goals (Flynn & et. al., 2010). Few major roles of integration in supply chains have been briefly discussed hereunder. 2.1 Building Collaboration between Suppliers and Buyers The integration within the supply chain processes often involves a strong collaboration of suppliers and buyers on the basis of common as well as shared information related operations. In relation to the recent development of supply chain processes, the integration mechanism consists of strategic, operational, tactical and infrastructural levels (Lu, 2011). In this regard, it plays a pivotal role in broadening information sharing functions throughout each level of supply chain, which are provided hereunder. Sourcing or procurement Production scheduling or planning Order processing inventory management and warehousing Customer service management Information system management levels Source: (Missouri Enterprise, 2014) The role of integration of supply chains has also been attributed to classify into two major categories including alignment of objectives and linkage of information in both internal as well as external operational processes of an organisation. 2.2 Alignment of Objectives The process of alignment generally refers to a particular and widespread vision, strategic objectives along with purposes and goals across the different functions associated with a supply chain process. It determines adequate consistency towards improving strategic directions in line with the overall business objectives of an organisation. More significantly, the alignment of activities along with roles of individuals in different strategic and operational areas can also be regarded as a major role towards achieving the supply chain goals of a particular organisation (Ayers, 2001). 2.3 Linkage of Information with Supply Chain Activities In the context of linkage, the role of integration of supply chains generally refers to a process associated with communicating and sharing information in response to planning and strategic directions of the supply chain processes. Building effective interaction of individuals involving decision making process, planning and operational functions can also be considered as one of the major roles of integration of the supply chain processes. Linkage within the individuals or groups across different business operations of an organisation ensures that the supply chains are performing within a common system in accordance with business objectives and decisions (U.S. Agency for International Development, 2011). 2.4 Clarity of Individual Roles and Responsibilities The integration process includes establishing roles, responsibilities and processes throughout the higher and lower level of employees. The processes in clarifying roles and responsibilities of the individuals and groups should be established in accordance with different logistics operations within a particular SCM system. The clarification process can be effectively assessed by disseminating as well as drafting job roles and through various process mapping exercises (U.S. Agency for International Development, 2011). 2.5 Visibility of Information The integration of supply chain is one of the most essential processes, which enables organisations to make adequate visibility of the data associated with different levels of business operation. It provides a clear view of the operations performed by different actors in various levels of the supply chain and ensures to determine situations in relation to demand and supply of product (Rangaraj & et. al., 2009). The process further reduces virtual gaps among the supply chain departments and enables an organisation to gain adequate control in its information sharing processes. The primary procedures of improving visibility of information include formulation of mechanisms that support supply chain planning as well as coordination and deployment of technology with the aim of collecting, analysing along with sharing of operational information (Simatupang & et. al., 2002). 2.6 Trust and Collaboration The role of building trust and collaboration among the actors and supply chain departments can also be considered as one of the most essential role of integration within a particular supply chain process. In this regard, the integration enables supply chains to generate trust and collaboration between members and institutions, which further helps organisations to identify as well as mitigate potential barriers to strengthen the supply chain operations (U.S. Agency for International Development, 2011). In addition, the integration within supply chain can also be attributed as streamlining processes by eliminating hurdles that can split the demand or supply information. In this regard, the role of integration within supply chains is considerably crucial for an organisation not only to improve their operational functions, but also to reduce different potential hurdles and improve decision making process of organisations (Missouri Enterprise, 2014). 3. Role of Data in Supply Chains and Analysing its Sharing of Large Volumes of Data Data generally refers to a process through which information of each group or individual are shared between the professionals associated with various departments within the supply chain process. In general, the performance of supply chain process is highly dependent upon a consistent classification of products and/or services, customers along with other data objects. In relation to the modern competitive environment of business, organisations are often recognised to focus on the critical roles of data warehousing process (Ventana Research, 2007). 3.1 Data Warehousing Data warehousing in an integrated supply chain process, which plays an essential role in achieving service goals along with analysing cost associated with logistics operations of an organisation. It plays strategic and value-added roles towards making adequate flow of information regarding storage and movement of data in different levels of the supply chain processes. In this regard, the principles regarding the roles of data can be characterised into different types (Altekar, 2005). Few of the major principles associated with the roles of data warehousing in an integrated supply chain process includes Recording or storing information or data Analysing business requirements Categorising different subject entities associated with each supply chain levels Making continuous development of the data warehousing system and information Providing effective paths to organisations in terms of dealing with different key issues Source: (Altekar, 2005) In the context of the principles, it evident that the data management and warehousing process provides a major support in recording and analysing the information about different supply chain activities. The process in this regard, facilitates organisations to improve their decision making process and strengthen their strategic directions within a particular market or industry. Although the data plays an essential role in categorising subject entities, the process also ensures to mitigate different key issues including integration mechanism or entity mapping functions of the supply chains. Therefore, it plays a vital role in an integrated supply chain and increases organisational capability to establish or strengthen competitive position of a business (Watson & et. al., 2001). 3.2 Use of Big Data Architecture In order to gain full potential to improve the function of supply chains, the data process often requires technological infrastructure along with different advanced analytical tools that can seamlessly transform data into a valuable business insights (Haddad, 2014). According to the recent development of supply chain practices, organisations are also witnessed to implement big data architecture, which is often seen as a major aspect for managing and processing volume, velocity and variety of data. The process of big data architecture in supply chain can be characterised into three types that include identification of supply chain goals, formulating operational practices of big data and building big data pipeline (White, 2013). 3.2.1 Identification of Supply Chain Goals In relation to an effective integration of supply chains, the process of big data plays a crucial role for organisations to identify the overall business or the supply chain goals. Moreover, it also ensures to deliver appropriate information about the required strategic measures and practices to achieve the predetermined supply chain goals and objectives. In order to formulate the supply chain goals, an organisation is highly require to develop data science and competent analytical team who are likely to perform close administration with each subject area within the integrated supply chain process (Haddad, 2014). 3.2.2 Make Operational Insights of the Big Data In the integration process of supply chain, it is highly essential for an organisation to ensure that both data science team and supply chain development team are operational as well as goal oriented. Moreover, the groups or teams are also needed to focus on maintaining repeatable analytical practices and approaches along with communicate valid actionable information to the valuable supply chain partners, customers and other groups of stakeholders (Haddad, 2014). 3.2.3 Building Big Data Pipeline In order to build a big data pipeline, the data management as well as the analytical system of supply chains should maintain collaborative actions and broaden sharing of information to each supply chain level of an organisation. In this process, the raw data are turned into actionable information through refining and enriching different supply chain practices (Haddad, 2014). 3.3 Implementation of Uniform Data Models The implementation of multiple data model can impose major obstacles for organisations to formulate valid information about the performance of their supply chain activities. The implementation of heterogeneous data model might reduce the competency level of managers to compare or validate the performance of each supply chain function within an integrated supply chain process (Altekar, 2005). In this regard, the selection and effective implementation of the data model can be regarded as one of the major strategic decisions for organisations to enhance performance through integration of supply chains. Adequate uniformity as well as reliability in using data models often improves the quality of information associated with suppliers along with collection of raw materials and other procurement activities within a supply chain process (Stevens, 2007). Moreover, uniformity in data management practice also enables organisations to effectively practice different analytical tools and formulate appropriate information regarding the supply chain activities (Altekar, 2005). In addition, uniformity in using data model to reduce analytical errors that might occur from different supply chain levels to a considerable extent. It also enables the data analysts to address issues associated with absent data effectively that might adversely affect in evaluating the performance of supply chains (White, 2013). With regard to the aforesaid discussion, it can be stated that data associated with the integration of supply chain plays a pivotal role for organisations to improve its performance. The process of data warehousing along with big data architecture can provide a major support to organisations in enhancing performance of activities associated with each supply chain level. Furthermore, adequate focus on practicing uniform data analytical mechanism or tool can also be effective in reducing different errors causing negative impact on supply chain activities. 4. Discussing Data Analysis Approaches in Supply Chain Integration According to the continuous emergence of supply chain processes, organisations irrespective of different industrial backgrounds are often recognised to use effective data analytical tools and methodologies to improve their supply chain performances. In order to gain continuous improvement of the supply chain processes, the integration of a quality based and relatively competent type of analysis approach within the supply chain can enable organisation to transform data sets into valuable business information (Adaileh & Abu-alganam, 2010). Few of the most effective and widely accepted data analysis approaches in supply chain integration have been discussed that provide major insights on the performance of the organisations. 4.1 Decision Support System (DSS) Decision Support System (DSS) is referred as one of the widely accepted information system in terms of providing adequate support to make decision of organisations. The approach includes critical and most effective analytical entities that facilitate business leaders or data analysts to determine appropriate decisions regarding their business functions (Deshmukh, 2007). According to the functions of the system, the database of DSS tends to maintain its information separately from other databases operated within a single business process. It involves a major set of analytical tools along with information and technological system that enables analysts to clearly define and make effective decisions of the entire supply chain process (Falasca & et. al., 2008). The system involves a set of mathematical tools such as operations research and Artificial Intelligence (AI) that enables the analysts to develop effective supply and demand plan for the supply chain integration. The major advantage of using DSS in an integrated supply chain process can be characterised into various types. In this regard, planning supply and demand along with manufacturing and scheduling supply chain activities are few of the major supports that can be derived from the use of DSS. Moreover, the system helps organisations to develop effective Distribution Resource Planning (DRP) system, which critically enables to ascertain appropriate requirement of resources in each supply chain level of an organisation (McGraw-Hill Higher Education, n.d.). 4.2 Business Intelligence (BI) Business Intelligence (BI) is referred as a set of systems, theories as well as methodologies that enables analysts or business executives to transform raw data into meaningful and valid information. The approach has been witnessed to be highly accepted by the modern firms in order to perform end-to-end supply chain activities seamlessly (Rabelo & Pereira-Klen, 2002). BI also comprises a set of algorithmic analytical tools and methods that help analysts to acquire a number of benefits regarding the qualitative data of the supply chain processes clearly. Moreover, the model i.e. BI also provides a major insight in terms of transforming raw data into valuable information that are essential for an organisation to empower its decisional and operational efficiency in the supply chain integration. The qualitative benefits from the implementation of BI approach can be viewed as a number of aspects that improve the supply chain integration of organisations (Manhattan Associates, 2008). Few of the major benefits are provided hereunder. Ensures quick response to users by generating timely data Enables analysts or organisations to reduce increasing complexities in reporting activities Facilitates users or organisations to manage supply chain partners The qualitative data generated from the BI approach also leverages investment portfolio of organisations and ensures to build sophisticated form of supply chain process Source: (Manhattan Associates, 2008) With reference to the qualitative benefits, it is evident that the incorporation of BI approach plays a pivotal role for organisations to build a strong and more competent structure of the supply chain system. The benefits of responding users with valuable data significantly enable an organisation to mitigate different risks that might be generated across various supply chain activities. In the similar context, the delivery of data within a short interval also facilitates users or data analysts to explore their reporting functions with minimum or less complexities critically and it is considered as a major qualitative benefit of BI approach. In this respect, the approach is also identified to foster trading relationship with a large number of valuable partners and stakeholders. In addition, the process of facilitating users by delivering data within a postulated period of time is also recognised to improve investment decisions of organisation across its different supply chain activities. 4.3 Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) can be duly considered as one of the effective and widely accepted Management Information System (MIS) approaches of organisations. In relation to the rapidly competitive environment in the global business environment, the execution of an effective ERP framework facilitates organisations to increase its operational and management functions associated with the supply chain process. ERP is one of the major tools of MIS, which supports the integrated management process, staff and various other functional areas of an organisation. It is an effective multi-dimensional and transaction based application program of software that enables modern organisations to manage and control different functional aspects of business (Fosser & et. al, 2008). Although the benefits derived from the practice of ERP might not be critically experienced by the supply chain departments, but with the lapse of time when the members will be performing effectively with the process, the benefits of the approach will be more apparent. According to the fundamental characteristics of the system, ERP approach in the supply chains involves a large number of intangible values that might not be measured by the financial outcome, but streamline the supply chain activities of organisations (Nemati & Mangaladurai, 2013). The implementation of ERP within the supply chains can be observed to influence functions associated with internal and external supply chain integration. The effective use of the approach has been critically observed to foster relationship between the supply chain members. ERP is more familiar for organisations to integrate concepts such as sharing of data and information, coordination among members in problem solving as well as decision making and planning activities within a particular supply chain process (Gunasekaran & Ngai, 2004). The incorporation of ERP can also be considered to improve the functions of supply chain processes seamlessly, as the approach includes a number of critical aspects associated with strategic, managerial, technological and organisational operations. In this context, the approach not only enables to increase operational efficiency, but it also empowers organisational capability to perform seamless supply chain operations (Deloitte Development LLC, 2014). 4.4 Supply Chain Risk Management (SCRM) Approach Supply Chain Risk Management (SCRM) is defined as a coordinated and conceptual approach for identifying and managing risks associated with supply chain processes. The coordinated structure in the SCRM approach has been widely accepted by organisations to build strong relationship between the supply chain members and partners, which significantly reduces different vulnerabilities related to the supply chain processes (Musa, 2012). The empirical studies in identifying the efficacy of SCRM have been observed to define the major contribution of the approach towards streamlining supply chain processes in an organisation. In this context, it has been observed that the SCRM framework enables organisations to recognise the set of risk agents and prioritise them in accordance with their influences across each supply chain operation (Kersten & et. al., n. d.). SCRM within the supply chain integration further enables organisations to record data associated with different potential risk factors and evaluate them in accordance with their negative impacts on an organisation. After the process of evaluating impacts, the approach further provides a major understanding to organisations to set up effective strategic measures by reducing or eliminating negative impacts of the risk factors. In this process, the SCRM framework transforms possible negative impacts of the risk factors into valuable data or information to the managers and enables them to reinforce decision making functions (Boyens & et. al., 2012). 5. Conclusion The establishment of supply chain integration fundamentally requires an effective management of materials flow that can be viewed mainly through a major set of perspectives including strategic, operational, tactical and infrastructural dimensions. With regard to the aforesaid discussion, it has been critically identified that the integration plays a pivotal role for organisations to stimulate appropriate controlling, organising and managing competencies of the supply chain activities. In order to ensure continuous development as well as performance of the supply chain processes, data management and analysis functions have also been observed to provide an essential support to an organisation. According to an in-depth understanding of the roles and importance of supply chain integration, data management and operations provide a major support through transforming supply chain data into valuable operational insights. The process in this regard, plays a crucial role for an organisation to improve strategic decisional procedures for achieving continuous success of the supply chain processes. Therefore, the assignment has also critically discussed a number of valuable analysis approaches in relation to supply chain data that have major characteristics to stimulate the performance of supply chain integration. The approaches discussed in this research report provide major assistance to organisations in terms of increasing supply chains efficiency, improving strategic decisional functions along with fostering relationship between the supply chain members within an organisation. 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