Over the last several decades, supply chain (SC) professionals have focused on performance issues that have emerged from a lack of commercial/business alignment with supply chain operations. Significant improvements have been made, and systemic processes (IBP—integrated business planning—and S&OP—sales and operations planning) have been developed to drive a fully integrated business. As business integration has continued to improve, the biggest SC opportunities have shifted.
Every year, the University of Tennessee’s Global Supply Chain Institute networks with hundreds of companies, requesting information on emerging supply chain issues. Our recent research shows that one of the greatest business integration opportunities is found within the traditional supply chain functions themselves. (“We have met the enemy and he is us!”). Specifically, we believe a major strategic integration opportunity exists between purchasing and logistics, and failing to capitalize on this opportunity is very clearly causing many firms to miss important opportunities to create value.
Business, H. C. of. (2017, November 9). Bending the Chain: The Surprising Challenge of Integrating Purchasing and Logistics. Retrieved December 14, 2018, from https://haslam.utk.edu/whitepapers/global-supply-chain-institute/bending-chain-surprising-challenge-integrating-purchasing
Stank, Theodore; Dittmann, J Paul; Autry, Chad; Peterson, Kenneth J.; Burnette, Mike; and Pellathy, Daniel, "Bending the Chain: The Surprising Challenge of Integrating Purchasing and Logistics" (2014). Peer Reviewed Articles. 13.