process integration creating collaborative advantages in the textile and clothing industry
DESCRIPTION
PRIMARY ACTIVITIES Expectations Marketing OperationsCustomer Strategic Decision Product and/or Service Specifications Product and/or Service Interpretation of Expectations Outbound Logistics Raw Materials SalesTRANSCRIPT
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PROCESS INTEGRATION
‘Creating collaborative advantages in the textile and clothing industry’
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THE INTERNAL VALUE CHAIN
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PRIMARY ACTIVITIES
ExpectationsMarketing
Operations CustomerStrategicDecision Product
and/or ServiceSpecifications
Product and/or Service
Interpretation ofExpectations
OutboundLogistics
RawMaterials
Sales
![Page 4: PROCESS INTEGRATION Creating collaborative advantages in the textile and clothing industry](https://reader035.vdocuments.us/reader035/viewer/2022062317/5a4d1b8f7f8b9ab0599c0784/html5/thumbnails/4.jpg)
SUPPORT ACTIVITIES Firm infrastructure
Management, strategy, information technology, finance, capital etc.
Human Resource Management Technology development, engineering Procurement
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INTERNAL INTEGRATION
ExpectationsMarketing
Operations CustomerStrategicDecision Product
and/or ServiceSpecifications
Product and/or Service
Interpretation ofExpectations
OutboundLogistics
RawMaterials
Sales
PROCUREMENT
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THE SUPPLY AND DEMAND INTERFACE
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DEMAND INTEGRATION Enhanced customer satisfaction Facilitated production planning Corrections and adjustments Shortened lead-time Inventory risk considerations Timely deliveries
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SUPPLY INTEGRATION Production excellence Reduced lead-time Cost effectiveness Maximised capacity utilisation
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COLLABORATIVE ADVANTAGE
“Two or more organisations ability to act as a cohesive whole in order to reduce transaction costs, increase organisational flexibility and responsiveness.”
(Dyer, 2000)
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DRIVERS OF COLLABORATION Gain access to valuable information Gain access to external know-how Gain access to new technology Gain access to new market Improve response times and service flexibility Share risk of investment Gain market power Speed up new market entry
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RISKS ASSOCIATED WITH COLLABORATION Lack of control Inappropriate relationships Poor communication or lack of understanding Lack of strategic focus Lack of mutual benefits Lack of trust Difficult to manage
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VERTICAL INTEGRATION
BENEFITS Increased coordination and control Flexibility limited to internal capacity Confined trade secrets
CONCERNS Increased takings from ownership Capacity balancing issues