CHAIN
RAW MATERIALS
COSTUMER
INFORMATION
PRODUCER
PHYSICAL
DISTRIBUTION
RETAILER DISTRIBBUTOR
CASH
BASIC
SUPPLY
CHAIN FOR
A PRODUCT
INFORMATION FLOW
PRIMARY PRIMARY
PRODUCT PRODUCT
FLOW FLOW
REACTIVE EFFICIENT
STABLE REACTIVE
Execution
Efficiencies
Cost Performance
Fulfils demand from trade
partners
Focuses Efficiency and Cost
Management
STRATEGIES
EFFICIENT
STABLE REACTIVE
REACTIVE
•INFORMATION FLOW
•REVERSE PRODUCT FLOW
•PRIMARY CASH FLOW
•PRIMARY PRODUCT FLOW
INFORMATION FLOW
Invoices Receipts
Sales Orders
Literature Rules and
Specifications Regulations
REVERSE PRODUCT FLOW
Payments of Products
Supplies
PRIMARY PRODUCT FLOW
Materials Services
Components Finished
Suppliers Products
PRIMARY CASH FLOW
VERTICAL INTEGRATION
LATERAL or HORIZONTAL
INTEGRATION
VERTICAL SUPPLY CHAIN MANAGEMENT
HORIZONTAL SUPPLY CHAIN MANAGEMENT
HORIZONTAL INTEGRATION
BENEFITS OF VERTICAL INTEGRATION
Economies of Focuses on
Know their
Scale and Particular Business
Market Well
Scope
Differences between
Vertical And Lateral
Integration
Increase in Size
Diversity its Product or Service
Achieve Economies of Scale
Reduce Competition
Gain Access to new Costumers
of the Same Market
VERTICAL INTEGRATION
LATERAL or HORIZONTAL
INTEGRATION
Plan
Develop (Source)
Make
Deliver
Return
END