The loss due to absence of an effective supply chain management or the benefit due to a well-managed supply chain highlights the importance of supply chain management. How good is the integration of supply chain matters a lot to every firm. The reduced inventories along the chain, better information sharing among the partners, lower costs, better customer service, efficient manufacturing and better trust among partners leading to a win-win situation can only be obtained through successful supply chain integration. This will result in improved quality in the creation of better facilities for product design research and enhanced customer service (Sinha, 2009). The integration of supply chain management systems in hospitals is an area under great discussion. As healthcare organizations need to develop greater strategic alliances along with zero defect information, the role of supply chain integration has been tremendously stressed on. Effective supply chain integration requires effective implementation, and implementation uninformed by strategy will at best produce little in the way of tangible benefits for the parties involved, and at worst be counterproductive and erode competitive advantage (Power, 2005).
Supply Chain Integration
According to Kaufman (1997), the purpose of supply chain management is to remove communication barriers and eliminate redundancies through coordinating, monitoring and controlling processes. Supply chain integration attempts to elevate the linkages within each component of the chain, to facilitate better decision making and to get all the pieces of the chain to interact in a more efficient way and thus create supply chain visibility and identify bottlenecks (Clancy, 1998 cited in Han, 2009).
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