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System integration refers to the act of intermixing two or more aspects of operations in an organization to improve productivity. This includes integrating information systems with the supply chain hence bringing ease in operations.
It is vital for organizations to take the best route to integration whereby they will be able to work with other organizations to minimize costs, and acquire a competitive advantage. This means that companies should be able to integrate their operations with those organizations they may wish to consider in case they want to outsource their services (Willcocks and Lacity 35).
Organizations bound to integrate need to have aligning goals whereby their vision and mission do not contradict. This helps them to work together during the integration process because all involved organizations should work.
System integration involves supply chain planning which ensures that all aspects of supply chain are in accordance with the expectations of company objectives. Another important aspect of the system is alignment which ensures that all systems are consistent with each other. This means that operations of individual systems should be in a way such that they do not contradict.
In fact, system integration is extremely beneficial in supply chain management because, it is the one that ensures flow of goods through the system without much friction. For example, raw materials can be ordered easily and delivered when they are just required. If system integration is faulty, unnecessary costs may be incurred and at times associated with delays which may translate to gross losses for organizations.
Therefore, the strategy to be used should define the role of information necessary in the course of decision making (Rivard and Aubert 87). The information should shed light for the best practices involved in decision making to facilitate for effective interaction of people in the supply chain. This positive integration ensures that communication and relationships between stakeholders in the supply chain are effected.
Insourcing and outsourcing strategies involve all the communications necessary in organizations. This is because they form the heart of all communications as they enable organizations to share data within its departments and other organizations. Performance of organizations in the supply chain depends with their ability to collect, analyze and interpret data (DHILLON 67).
This involves technological advancement in systems because advanced equipment reduces the complexity of operation activities. This means that if an organization has developed communication equipment, it stands a better chance of getting the best information from the market. This helps them to design products depending on what consumer requires hence maximizing on their revenue and sales.
Organizations may decide on where to outsource for services depending with equipment needed. For example, a company may be in need of outsourcing equipment to cater for increased demand hence they should consider organizations with equipment of the same quality or more advanced than theirs. This means an organization should be able to consider technological integrations in their systems at all times (Bates 76).
In order for organizations to segment their supply chains effectively, proper system integration is vital because the organization will be able to obtain crucial information that can be useful in the determination of segmentation guidelines. Product design also depends on supply chain hence calling for adequate integration between systems in the supply chain.
Therefore, whether organizations decide to source, outsource or insource services to foster their operations, system integration are particularly essential because these systems have to ensure smooth flow of goods and products in the supply chain (Hanschke 58).
The role played by these integrations cannot be ignored as they form fundamentals of all operations in any organization. These include purchase of the raw materials up to selling of products to the consumer.
Works Cited
Bates, Marcia J. Understanding Information Retrieval Systems: Management, Types, and Standards. New York: CRC Press, 201. Print
DHILLON, M C. TECHNOLOGY MANAGEMENT: Advanced Strategy for Information Technology. London: Global India Publications, 2009. Print.
Hanschke, Inge. Strategic IT Management: A Toolkit for Enterprise Architecture Management. New Jersey: Springer, 2010. Print
Rivard, Suzanne., and Aubert, Benoit A. Information technology outsourcing. Michigan: M.E. Sharpe, 2008. Print.
Willcocks, Leslie., and Lacity, Mary C. Global sourcing of business and IT services. London: Palgrave Macmillan, 2006. Print.
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