Running head: LOGISTICS AND SUPPLY CHAIN REPORT 1

Logistics and Supply Chain Report

Pamela Williams
ISCOM/352
June 30, 2014
Mario Vaccari
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Logistics and Supply Chain Report
LOreal USA has always taken great pride in being able to deliver our product and
services to our customers RTFT and in a timely fashion. In order to continue to serve our
customers and provide them with quality products and services implementing an integrated
supply chain will serve us well in the future of our business. An integrated supply chain allows
each department determine if the supplies are available to produce their products. The schedulers
for the UPS can tell the production managers what orders will be released for the production
lines. Implementing a supply chain system that allows all parts of the manufacturing process see
what each is doing will cut cost and save time. It will allow the company to produce products
that all the components are available for at that time.
What is an Integrated Supply Chain?
An integrated supply chain allows manufacturers to look into business process across
multiple suppliers and across disparate platforms to follow materials and components wherever
they are expanding traditional supply chain management beyond tracking materials , information
and finances they move from supplier to manufacturer. It will give our company the ability to
look through a window and see what other departments are producing and able to provide the
next level in our service is able to provide or not provide at a specific time (Basu, 2014)

An integrated supply chain will allow persons in all levels of the business to be involved
in supplying the company and their customers with their needs. It will allow all departments to
play an essential part in making our company successful and show our customers that they are a
top priority for us at all times.
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Supply Chain Best Practices
An easy to use, interactive interface for viewing the schedule and providing forward visibility of
inventory positions (Integrated Supply Chain, 2013).
Modeling of operational constraints at the level of detail required to represent real-world
capabilities with enough fidelity to accurately evaluate alternatives (Integrated Supply Chain,
2013)
Fast optimization and robust what if analysis to holistically simulate the impact and tradeoffs of
business decisions (Integrated Supply Chain, 2013)
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Advanced visual exceptions reporting that supports the Sales and Operations Planning process by
highlighting the most urgent problems along with guided analysis on resolving them (Integrated
Supply Chain, 2013)
Dynamic scheduling with real time response, allowing the scheduler to quickly make feasible
charges to the schedule, respecting equipment, constraints, raw materials availability, batch
dependencies (Integrated Supply Chain, 2013).
Flexibility
An tightly integrated supply chain for a small or large business is a network of businesses and
contractors that provide raw materials, transportation, manufacturing, distribution, warehousing
and retailing services. Businesses rely on efficient supply chains to provide a high level of
customer service, while meeting sales and profit targets. Information technologies, including
enterprise resource planning systems, are at the core of integrated supply chains (Integrated
Supply Chain, 2013).
Tight supply chain integration gives management operational flexibility to respond rapidly to
external events, such as the actions of competitors and changes in customer demand. Companies
can gather intelligence through their supply chains, which allows them to be generally aware of
what their competitors are planning months in advance. For example, if a competitor launches a
new product, an electronics manufacturer could leverage its integrated supply chain to source the
parts, activate a marketing plan and rush a prototype from the design stage to the launch stage in
a few weeks (Integrated Supply Chain, 2013).
Inventory Management

Integrated supply chains improve inventory management, which means fewer overstocked and
understocked conditions. Overstocking may result in higher storage costs and product
obsolescence, while understocking could mean losing customers to competitors. Tight
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integration means that retailers can quickly adjust their inventory orders weeks or months in
advance of anticipated changes in customer demand to ensure that the right amount of stock is
on hand. Speed is essential in global supply chains because raw materials and finished goods are
often transported over long distances. Tightly integrated supply chains also facilitate just-in-time
manufacturing, in which companies assemble and manufacture products as the orders come in
(Integrated Supply Chain, 2013).
Profit Margins

Operating flexibility and tight inventory management lead to a lower cost structure, which results
in higher profit margins. By responding rapidly to changes in the competitive and customer
environments, small businesses are able to remain competitive and maintain or grow their top
and bottom lines. Tight integration provides companies with visibility not only into their own
operations but also into their suppliers' operations, which allows for collaborations on reducing
costs and driving margins.
Considerations

Tightly integrated supply chains can serve as early warning systems. For example, if a supplier is
experiencing cash flow problems, customers will find out quickly and they can start making
alternative arrangements. Some customers may step in and loan the supplier some working
capital so that they can continue operating (Integrated Supply Chain, 2013) . Supply chain
integration usually involves upfront
costs and disruptions in operations as people are trained on new information systems (Integrated
Supply Chain, 2013).
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References
Basu, C. (2014). The Advantages of a tightly Integrated Supply Chain. Retrieved from
http://www.smallbusiness.chronicles
Integrated Supply Chain. (2013). Integrated Supply Chain. Retrieved from
http://www.integratedsupplychain.org