It is necessary to align and coordinate the supply network using a shared IT system. This network has lots of stakeholders including the manufacturers, suppliers, transporters, storage houses and others. Effective supply chain integration is necessary to manage this network efficiently. There are different levels to this system. The owner has to select specific vendors based on the required items and other objectives. For example, a manufacturing company has to source different types of materials, parts and components to make a product. It needs a centralized program to manage all people, businesses and processes related to its manufacturing.
There are several advantages of this integration. It eliminates wastage. There is no unnecessary inventory. The company can order required materials as and when needed, rather than buying such parts in large quantities. It improves the management of inventory. There are fewer middlemen and the company sees cost advantages.