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Why an Integrated Supply Program Matters?

Manual processes and a lack of transparency pose risks to any organization's growth.

24 July 2024

Why an Integrated Supply Program Matters?

Many growing businesses hesitate to optimize their supply chain due to initial costs, believing their current sourcing model is sufficient. However, the manual processes and lack of transparency pose risks to their organization’s growth.

What’s the meaning of an Integrated Supply Program (ISP) ?

According to APICS (the Association for Supply Chain Management), integrated supply refers to the coordination and synchronization of all activities and processes across the supply chain to improve efficiency, reduce costs, and enhance overall performance. This involves integrating and managing the flow of goods, information, and finances from sourcing and contracting suppliers to the delivery to end customers.

The goal is to create a cohesive and agile supply chain. And that’s why not only procurement, sourcing, and category management are involved, but also the management of buffer stock (crib). These functions are crucial components of an ISP.

What is the difference between procurement, sourcing and category management ?

Procurement involves the process of acquiring goods and services from external and reliable sources in terms of quality, ESG compliance and cost.

Sourcing is the strategic aspect of procurement to identify, evaluate, and select the right sources of suppliers. This requires a strategic approach to establish strong relationships with suppliers, negotiate favourable Terms & Conditions, and ensure a consistent supply of high-quality materials. Sourcing strategies should align with the overall supply chain objectives to support seamless operations.

Category Management involves mastering specific categories of products or services as a single unit, with a strong experience in market intelligence. In the context of ISP, category management helps in understanding market dynamics, supplier capabilities, and internal needs to develop comprehensive and pragmatic strategies to manage the supply chain effectively for these categories.

In ISP, procurement, sourcing, and category management are interconnected and contribute to the overall goal of creating a responsive supply chain and deliver superior value to customers.

GIS International offers a smart and comprehensive end-to-end supply chain solution for companies seeking to streamline their supply chain with the entire procurement process. This integrated approach greatly enhances your operational performance and simplifies daily management. Result? Budget savings and new possibilities for growth with GIS’ integrated supply solutions. Find out more here; https://gisinternational.net/integrated-supply/

Want to find out how GIS International collaborates with companies worldwide? Contact us here.

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