What is Active External Integration?

External supply chain integration refers to close collaboration with other members of the supply chain, such as suppliers and customers, to streamline the flow of materials and information. This includes the coordination of resources as well as information sharing, the latter of which can include demand forecasting, production plans and inventory management. Growing uncertainty in the business environment has enhanced the need for external integration with suppliers to counter disruption and maintain business continuity.

 


Related Terms

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