The purpose of this paper is to outline the importance and benefits, paint industry can achieve through supply chain integration. These benefits are primarily in the area of achieving superior customer service and operating with lower working capital. A three level framework for achieving the integration has been proposed which is in the form of structural integration, process integration and performance integration. The paper also describes in detail the factors influencing paint industry working capital needs and how this integration mechanism allows the industry to exercise control over these factors. The framework has been described in the form of a case study in a paints company. The research findings reveal that most of the paint industries have aligned their supply chain objectives with their business objectives. They are now on course for aligning their processes and management focus. Enhanced levels of competitiveness would require paint industries to manage the three-dimensional alignment of achieving the agenda set by the business strategy. Further research work should focus on assessing the current level of supply chain integration. It is essential that structure and strategy should be aligned to achieve the business objective of providing superior customer service at the lowest cost.
Supply chain management
Supply chain management (SCM) is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. In essence, Supply Chain Management integrates supply and demand management within and across companies. More recently, the loosely coupled, self-organizing network of businesses that cooperates to provide product and service offerings has been called the Extended Enterprise. Supply chain management is a cross-functional approach to manage the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the end-consumer. As organizations strive to focus on core competencies and becoming more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.
• Strategic network optimization.
• Strategic partnership with suppliers, distributors, and customers, • Product design coordination.
• Information Technology infrastructure, to support supply chain operations. • Where-to-make and what-to-make-or-buy decisions
• Sourcing contracts and other purchasing decisions.
• Production decisions, including contracting, locations, scheduling, and planning process definition. • Inventory decisions, including quantity, location, and quality of inventory.
• Daily production and distribution planning, including all nodes in the supply chain. • Production scheduling for each manufacturing facility in the supply chain (minute by minute). • Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. • Sourcing planning, including current inventory and...